Oil and Gas

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Overview

Our representation of oil and gas producers, mid-stream entities, and natural gas pipelines has been a mainstay of Modrall Sperling's natural resources practice since the early days of the firm. Over the years, some of the firm's largest and most complex litigation matters have arisen from disputes involving oil and gas leases and contracts relating to the development, production and transportation of oil, natural gas and carbon dioxide.  The firm's clients include major and independent oil and gas companies.

Transaction and Regulatory Practice

We represent our oil and gas clients in all aspects of business transactions, from title opinions, acquisitions, regulatory due diligence and tax advice for properties located on fee, state, federal and Indian lands.  Our transactional experience includes review and drafting of agreements relating to the acquisition, exploration, financing, development, operation and transfer of oil and gas properties, including leases, joint operating agreements, unitization agreements, Indian mineral development agreements, liens, and gas sales, gathering and transportation contracts.

Our oil and gas lawyers represent clients before state and federal administrative agencies charged with responsibility for the development and taxation of the state's oil and gas resources, as well as the gathering and distribution of those resources, including the New Mexico Oil Conservation Division and Commission (OCD and OCC), Public Regulation Commission (PRC), Commissioner of Public Lands, New Mexico Taxation and Revenue Department (TRD), Bureau of Land Management (BLM), Minerals Management Service (now the BOEMRE), Bureau of Indian Affairs (BIA), Federal Energy Regulatory Commission (FERC), and Interior Board of Land Appeals (IBLA).

Litigation

We have represented producers in a variety of complex litigation matters including royalty class actions, multi-party environmental contamination and toxic tort cases, gas sales contract disputes and oilfield personal injury and wrongful death suits.   We also have substantial experience representing oil and gas producers and other mineral interest owners in a range of ownership disputes arising from claims of lease expiration, options to repurchase oil and gas leases, preferential purchase rights under joint operating agreements and mineral development agreements, and title disputes concerning conflicting claims to mineral interests. 

Industry Participation

Our oil and gas lawyers are active in several industry and professional groups and have presented papers at many seminars and institutes. Our lawyers have served as President and Trustees of the Rocky Mountain Mineral Law Foundation, are members of the Advisory Board for the Institute for Energy Law and are actively involved in New Mexico Oil and Gas Association committees and working groups, including a committee addressing the "pit rule" adopted during a previous administration.

Attorneys

Experience

  • Represented oil and gas producer in a class action royalty dispute that resulted in a summary judgment for the producer. See San Juan 1990-A et al. v. El Paso Prod. Co. and Amoco Prod. Co., 2002-NMCA-041, 132 N.M. 73, 43 P.2d 1083, appeal dismissed. 

  • Represented a natural gas pipeline company in appellate proceedings that resulted in the rule that federal court has jurisdiction to determine whether certain tort claims should be heard in state, federal, or tribal court.  See El Paso Natural Gas Co. v. Blackburn, 831 S.W.2d 735 (Tex. App. – Amarillo 1992).

  • Represented an oil and gas company in a New Mexico Supreme Court case that established proper venue for suits against foreign corporations which appoint agents for service of process which are sued along with unregistered corporations.  See Baker v. BP America Prod. Co., 137 N.M. 334, 110 P.3d 1071 (2005).

  • Represented an operator which had commenced drilling on an adjacent surface tract prior to expiration of an oil and gas lease, defeating on summary judgment a lessee which had acquired a top lease.  See Manzano Oil Corp. v. Chesapeake Operating, Inc., 178 F.Supp.2d 1217 (D. N.M. 2001).

  • Defended a class action natural gas royalty underpayment claim in Colorado District Court.  See Richard Parry, et al. v. Amoco Production Company, District Court, County of La Plata, State of Colorado, Cause No. 94 CV 105.

  • Represented oil and gas producer in the United States Supreme Court in a case involving the power of tribes to tax natural resources production.  See Merrion v. Jicarilla Tribe, 455 U.S. 130. 

  • Represented oil producing company in defending against a title claim to a 70 year old producing property, winning summary judgment.  See Fred R. Skaggs, et al. v. Conoco Inc. et al., 125 N.M. 97.

  • Represented a refinery in a multi-plaintiff state court toxic tort action alleging hydrogen sulfide and benzene exposure from waste water effluent, winning dismissal of the claims on summary judgment.

  • Negotiated and drafted oil and gas exploration and production leases, joint venture agreements, and pipeline rights of way agreements involving private, public and Indian lands.

  • Represented oil and gas clients in conducting title reviews and preparing title opinions, assisting with purchases and acquisitions, financing, exploration, development and operations, and other business transactions, including oil and gas property transfers, leases, joint operating agreements, unitization agreements, liens, gas sales, gathering and transportation contracts.