Area of Mutual Interest (AMI) Disputes

South Texas Shale, in the 234th Judicial District Court, Harris County, Texas

Represented several oil and gas companies in defending a case filed by Swift Energy alleging a breach of the parties’ joint operating agreement and related AMI agreement. Successfully obtained a transfer of the case to a favorable venue. Soon after, filed counterclaims seeking operatorship under the parties’ joint operating agreement and seeking a related temporary injunction. The dispute resolved in advance of the temporary injunction hearing.

Type of Case: Joint Operating Agreement Litigation, Area of Mutual Interest Litigation, Lease Ownership Litigation

BHP Billiton Petroleum Properties, in the 81st Judicial District Court, LaSalle County, Texas

Represented BHP Billiton against plaintiff claiming breach of an AMI agreement. Plaintiff alleged that BHP Billiton was bound by an agreement containing an AMI that had been executed by a different company whose properties BHP Billiton had later acquired. Argued on behalf of BHP Billiton that the previous agreement had not been assigned to BHP Billiton as part of its acquisition. The parties later reached a settlement of the dispute.

Type of Case: Area of Mutual Interest Litigation

DCP Midstream, in the District Court, Division 4, Weld County, Colorado

Represented DCP Midstream in a lawsuit against Anadarko Petroleum. DCP claimed that Anadarko and its subsidiaries were violating the terms of more than 40 different gas purchase, gathering, and processing contracts for assets located in the DJ Basin. DCP alleged that Anadarko had been improperly diverting gas production away from DCP’s facilities in favor of facilities owned by Anadarko’s own midstream company, violating numerous AMI provisions. DCP sought to recover more than $1 billion in damages for past breaches of the contract and specific performance of the contracts. The case settled under confidential terms.

Type of Case: Area of Mutual Interest Dispute