Oil & Gas Law (685-001)
2 credits
This seminar will provide an overview of oil and gas law, from its traditional roots in the
common law of property and contract to more recent developments in administrative law and
regulations. We will learn about how the law has shifted from a focus on production to a
concern for safety and the environment. The course goal is to introduce students to the topics
involved in the practice of oil and gas law, with an eye toward preparing for an oil and gas
section of a bar exam (e.g., Texas). In addition to traditional issue such as surface management,
drainage, royalties, and the oil and gas lease, we will consider modern-day complexities posed
by exploration in the eastern United States, offshore drilling, and hydraulic fracturing.
Professor:
Benjamin Nussdorf: Nussdorf@american.edu
Required Materials
The textbook for the course is Lowe, et al., Oil and Gas Law (6th ed. 2012). You will be provided
with additional readings from time to time, as appropriate.
Pre-Requisites
There are no pre-requisites for this course, and this course does not impermissibly overlap with
other courses.
Examination
All students must take a 2-hour in-class examination at the end of the semester (closed-book,
no outside material). Your grade will be based on the quality of your exam. Exam tip: direct
and targeted answers demonstrating strong legal analysis are preferable to emptying the
proverbial dump-truck of information across a page.
CLASSROOM POLICIES:
● CLASS ATTENDANCE:
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Regular attendance at classes is required by WCL and is necessary for successful work. Students
who participate meaningfully in class more than four times in a semester may receive a grade
enhancement.
● DISABILITY SUPPORT SERVICES:
Any student who may need an accommodation based on the potential impact of a disability
should contact WCL and the Dean of Students Office.
● ACADEMIC INTEGRITY POLICY:
Students must strictly adhere to the highest obligations of the legal profession and WCL
enforces those standards in the same self-regulating manner as the profession. For further
information please refer to http://www.wcl.american.edu/studentaffairs/honorcode.pdf.
● RECORDING OF CLASSES:
This course will follow WCL’s Class Recording Policy. Essentially, students may request class
recordings when they will be absent for religious reasons, family emergencies, and other
authorized absences. Requests for recording and questions about the policy should be directed
to the Dean of Students Office.
CLASS SCHEDULE AND ASSIGNMENTS
BASIC CONCEPTS: GEOLOGY, TECHNOLOGY, AND EXPLORATION
1. Science of Hydrocarbon Exploration and Extraction, Ad Coleum Doctrine and Rule of
Capture
(Lowe, Skim: 4-14, 17-21, 24-26, 33-42, Read: 42-65)
● Kelly v. Ohio Oil Co., 57 Ohio St. 317, 49 N.E. 399 (Ohio 1897). [56]
PRIVATE LAW: OWNERSHIP AND LEASING
2. Trespass and Ownership
(Lowe, Read: 67-92, 97-111, Skim: 115-122, Read: 122-125)
● Coastal Oil & Gas Corp. v. Garza Energy Trust, 268 C.W.3d 1 (1 Tex. 2008). [67]
● People’s Gas Co. v. Tyner, 131 Ind. 277, 31 N.E. 59 (Ind. 1892). [97]
● Wronski v. Sun Oil Co., 89 Mich. App. 11, 279 N.W.2d 564 (Mich. App. 1979).
[100]
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● Champlin Exploration, Inc. v. Western Bridge & Steel Co., Inc., 597 P.2d 1215
(Okla. 1979). [104]
● Texas American Energy Corp. v. Citizens Fidelity Bank & Trust Co., 736 S.W.2d 25
(Ky. 1987). [107]
● Enron Oil & Gas Co. v. Worth, 947 P.2d 610 (Okla. Civ. App. Div. 4 1997). [122]
3. Trespass Continued and Loss of Mineral Ownership
(Lowe, Read: 127-172)
● Kennedy v. General Geophysical Co., 213 S.W.2d 707 (Tex. Civ. App. –
Galveston 1948). [127]
● Grynberg v. City of Northglenn, 739 P.2d 230 (Colo. 1987). [133]
● Humble Oil & Refining Co. v. Kishi, 276 S.W. 190 (Tex. Com. App. 1925). [140]
● Kidd v. Hoggett, 331 S.W.2d 515 (Tex. Civ. App. – San Antonio 1959). [147]
● Diederich v. Ware, 288 S.W.2d 643 (Ky. 1956). [155]
● Scully v. Overall, 17 Kan. App. 2d 582, 840 P.2d 1211 (Kan. App. 1992). [169]
4. The Oil and Gas Lease: the Granting and Habendum Clauses
(Lowe, Read: 182-188, 199-203, 208-215, 225-227, 230-235, 243-248)
●
●
●
●
●
Hunt Oil Co. v. Kerbaugh, 283 N.W. 2d 131 (N.D. 1979). [182]
Schwartzenberger v. Hunt Trust Estate, 244 N.W. 2d 711 (N.D. 1976). [209]
Breaux v. Apache Oil Corp., 240 So. 2d 589 (La. App. 3 Cir. 1970). [225]
Clifton v. Koontz, 160 Tex. 82, 325 S.W.2d 684 (Tex. 1959). [230]
Stanolind Oil & Gas Co. v. Barnhill, 107 S.W.2d 746 (Tex. Civ. App. – Amarillo
1937). [243]
● Pack v. Santa Fe Minerals, a Div. of Santa Fe Intern. Corp., 869 P.2d 323 (Okla.
1994). [245]
5. Savings Clauses, Pooling Clause, Royalty Payments and Implied Covenants
(Lowe, Read: 250-252, 260-264, 271-275, 279-292, 295-296, 301-309, 315-318)
● Freeman v. Magnolia Petroleum Co., 141 Tex. 274, 171 S.W.2d 339 (Tex. 1943).
[250]
● Rogers v. Osborn, 152 Tex. 540, 261 S.W.2d 311 (Tex. 1953). [260]
● Perlman v. Pioneer Ltd. Partnership, 918 F.2d 1244 (5th Cir. 1990). [271]
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● Amoco Production Co. v. Underwood, 558 S.W.2d 509 (Tex. Civ. App. – Eastland
1977). [283]
● Piney Woods Country Life School v. Shell Oil Co., 726 F.2d 225 (5th Cir. 1984).
[301, 331]
6. Implied Lease Covenants Continued
(Lowe, Read: 320-327, 331-339, 348-355, 363-368, 376-381)
● Amoco Production Co. v. First Baptist Church of Pyote, 579 S.W.2d 280 (Tex.
Civ. App. – El Paso 1979). [321]
● Piney Woods Country Life School v. Shell Oil Co., 726 F.2d 225 (5th Cir. 1984).
[301, 331]
● Garman v. Conoco, Inc., 886 P.2d 652 (Colo. 1994). [333]
● Amoco Production Co. v. Alexander, 622 S.W.2d 563 (Tex. 1981). [348]
● Superior Oil Co. v. Devon Corp., 604 F.2d 1063 (8th Cir. 1979). [363]
● Baldwin v. Kubetz, 148 Cal. App. 2d 937, 307 P.2d 1005 (Cal. App. 2 Dist. 1957).
[376]
7. Royalties Continued, Mineral Interests and Royalty Interests
(Lowe, Read: 388-390, 400-407, 414-428)
● Cannon v. Cassidy, 542 P.2d 514 (Okla. 1975). [388]
● Bodcaw Lumber Co. v. Goode, 160 Ark. 48, 254 S.W. 345 (Ark. 1923). [400]
● McSweyn v. Musselshell County, Montana, 193 Mont. 525, 632 P.2d 1095
(Mont. 1981). [404]
● Barker v. Levy, 507 S.W.2d 613 (Tex. Civ. App. – Hous (14 Dist.) 1974). [414]
● French v. Chevron USA, Inc., 896 S.W.2d 795 (Tex. 1995). [423]
● Anderson v. Mayberry, 661 P.2d 535 (Okla. App. Div. 1 1983) [427]
PUBLIC LAW: REGULATION OF OPERATIONS
8. Regulation for Hydrocarbon Conservation: Limits on Well Spacing, Density, and
Production
(Lowe, Read: 631-639, 647-650, 653-659, 667-674, 685-689)
● Range Resources Appalachia, LLC v. Salem Tp., 600 Pa. 231, 964 A.2d 869 (Pa.
2009). [631]
● Larsen v. Oil and Gas Conservation Commission, 569 P.2d 87 (Wyo. 1977). [653]
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● Pattie v. Oil and Gas Conservation Commission, 145 Mont. 531, 402 P.2d 596
(Mont. 1965). [667]
● Exxon Corp. v. Railroad Commission, 571 S.W.2d 497 (Tex. 1978). [671]
● Denver Producing & Refining Co. v. State, 184 P.2d 961 (Okla. 1947) [686]
9. Pooling
(Lowe, Read: 715-746, 784-791)
● Bennion v. ANR Production Co., 819 P.2d 343 (Utah 1991). [718]
● Anderson v. Corporation Commission, 327 P.2d 699 (Okla. 1957). [735]
● Baumgartner v. Gulf Oil Corp., 168 N.W.2d 510 (Neb. 1969) [784]
10. Regulation for Environmental Conservation: Clean Water Act, Endangered Species Act,
CERCLA, RCRA, OPA, SDWA
(Lowe, Read: 797-819, 822-829, 833-841, 845-849, 864-868, 873-883, 887-891, 894900)
● Rapanos v. United States, 547 U.S. 715, 126 S.Ct. 2208, 165 L.Ed.2d 159 (2006).
[800]
● Babbitt v. Sweet Home Chapter of Communities for a Great Oregon, 515 U.S.
687, 115 S.Ct. 2407, 132 L.Ed.2d 597 (1995). [822]
● Amoco Oil Co. v. Borden, Inc., 889 F.2d 664 (5th Cir. 1989). [833]
● Quaker State Corp. v. United States Coast Guard (Quaker State I), 681 F.Supp.
280 (W.D. Pa. 1988). [845]
● Quivira Min. Co. v. United States E.P.A., 765 F.2d 126 (10th Cir. 1985). [866]
● Cose v. Getty Oil Co., 4 F.3d 700 (9th Cir. 1993). [875]
● Meghrig v. KFC Western, Inc., 516 U.S. 479, 116 S.Ct. 1251, 134 L.Ed.2d 121
(1996). [887]
11. Contracts and Transfers by the Lessee
(Lowe, Read: 913-960)
● Preston Exploration Co., L.P. v. GSF, L.L.C. and Chesapeake Energy Corp., 669
F.3d 518 (5th Cir. 2012) [914]
● Petropro Ltd. v. Upland Resources, Inc., 279 S.W.3d 743 (Tex.App.-Amarillo
2007) [923]
● Reynolds-Rexwinkle Oil, Inc. v. Petex, Inc., 268 Kan. 840 (Kan. 2000) [936]
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● Cook v. El Paso Natural Gas Co., 560 F.2d 978 (10th Cir. 1977) [945]
● Oag v. Desert Gas Exploration Co., 239 A.D.2d 899, N.Y.S.2d 654 (N.Y.A.D. 4
Dept. 1997) [952]
● Kothe v. Jefferson, 97 Ill.2d 544, 74 Ill.Dec. 43, 455, N.E.2d 73 (Ill. 1983) [954]
12. Public Ownership: Sovereign Lands and Operators, Onshore and Offshore
(Lowe, Read: 1099-1108, 1116-1118, 1127-1154, 1168-1177)
● Pennaco Energy, Inc. v. U.S. Dep’t of the Interior, 377 F.3d 1147 (10th Cir. 2004)
[1100]
● In Re Great Plains Petroleum, 164 IBLA 343, (1990) [1116]
● Mobil Oil Exploration & Producing Southeast, Inc. v. United States, 530 U.S. 604
(2000) [1129]
● Davis & Sons, Inc. v. Gulf Oil Corp., 919 F.2d 313 (5th Cir. 1990) [1150]
● Shoshone Indian Tribe v. U.S., 2003 WL 21437158 (Fed.Cl.2003) [1168]
13. Current Significant Cases in Oil and Gas Law
(subject to case substitution based on ongoing case developments)
● Native Vill. of Point Hope v. Jewell, Case No. 12-35287 (9th Cir., 2014).
● Ctr. for Biological Diversity v. Jewell, Case No. C 11-06174 PSG (N.Dist. Cal.
2013).
● Strudley v. Antero Res. Corp., 2013 COA 106 (Colo. Ct.App., 2013).
● State ex. rel. Morrison v. Beck Energy Corp., Case No. 25953, 2013 Ohio 356
(Ohio App., 2013).
14. Review Session
6