Safeguarding your property rights is of utmost importance, as the consequences of inadequate protection can be far-reaching. While oil and gas rights disputes may not directly affect the average citizen, other property-related conflicts can significantly impact individuals and their assets. In such complex situations, navigating the intricacies of property laws requires the expertise of an experienced attorney who can empower you with a clear understanding of your rights, ensure the legal protections you are entitled to, and advocate on your behalf. The following lawsuit shows the importance of expert counsel in understanding your property rights.
In 2011, a dispute arose over a large drilling unit’s oil and gas rights. Chesapeake Operating (“Chesapeake”) was the unit’s appointed operator and a lessee of mineral interests for a portion of the unit. TDX Energy (“TDX”) was also a lessee for a part of the unit. The unit’s drilling began in February 2011 and ended in July 2011. TDX’s leases to its oil and gas interests had not been recorded until after the drilling had been completed in September 2011.
Later in 2011, TDX made Chesapeake aware of its leases and requested accounting reports, as required under Louisiana’s Title 30, section 103.1. After six weeks, having yet to receive a response, TDX again notified Chesapeake of how it had failed to comply with the law. Chesapeake eventually responded with a letter to TDX, requesting TDX decide whether it would participate in the unit well’s risk under section 10(A) of the statute. TDX responded by disagreeing, stating it was not required by law to opt-in or out and that Chesapeake did not provide the accounting reports; it forfeited its rights to contribution to drilling costs.