Texas Supreme Court Rules on Suspension of Proceeds of Oil and Gas Production
Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC presented a recurring question faced by Texas oil and gas produ...
June 3, 2023
1:48 AM
Freeeport-McMoRan Oil and Gas, LLC and Ovintiv USA Inc. v. 1776 Energy Partners LLC presented a recurring question faced by Texas oil and gas producers: When can proceeds of production be withheld by the operator without liability for interest? Ovintiv and its predecessor operator, Freeport-McMoRan, represented by Gray Reed partners Jim Ormiston and David Leonard, suspended proceeds it was contractually obligated to pay to non-operator 1776 in reliance on the safe harbor provisions of Section 91.
Gray Reed