Some Clarity On Texas Oil And Gas Executive Rights

Law360 (March 20, 2020, 4:21 PM EDT) -- He who has the gold makes the rules. However, when the gold includes oil and gas executive rights — i.e., the ability to lease, or not lease, a mineral interest — the rulemaker does not have unfettered discretion, especially when decisions appear to stem from self-interest.

Over the past decade, the Texas Supreme Court has attempted to define and clarify exactly what duty is owed by an oil and gas executive right holder to the nonexecutive interest holders who are along for the ride, cashing in on production but having little to no ability to control how they are generated. While...

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