5th Circ. Nixes Oil Cos.' Win In Eagle Ford Contract Fight

Law360 (June 13, 2019, 5:06 PM EDT) -- The Fifth Circuit reversed a ruling Wednesday in a contract suit between a group of oil companies over their plans to jointly develop Texas' Eagle Ford Shale, finding that an Oklahoma-based company isn't contractually obligated to offer other companies shares of its newly acquired development interests.

In a seven-page published opinion written by Fifth Circuit Judge James C. Ho, the panel said the plain meaning of the parties' contract with defendant EnerQuest Oil & Gas LLC excludes interests that each party owned individually before the agreement was entered. That exclusion applies regardless of whether the parties to the contract sell the development interests to...

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