Texas Surface Rights Will Be Tested In Pooling Case

Law360, New York (March 17, 2014, 6:33 PM EDT) -- The Texas Supreme Court's anticipated ruling in the case of Key Operating Equipment Inc. v. Hegar et al could significantly impact the ability of oil and gas producers to gain access to wells that are part of pooled units.[1] The key issue before the court is whether a landowner whose minerals had been severed and later leased and pooled[2] with oil and gas leases on adjacent property can prevent a lessee-operator from using a road owned by the landowner to service wells on an adjacent property, where those wells are part of the same pooled unit. The First Court of Appeals in Houston answered "yes," affirming the trial court's injunction that prevented Key Operating, a lessee-operator, from using the road owned by the Hegars to access its wells on the adjacent property.[3]...

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