Case Update: Austin Court of Appeals Issues Opinion in TXOGA Case

The Austin Court of Appeals issued an opinion June 30 in the Railroad Commission v. Opiela matter, which Texas oil and gas lawyers have been anticipating now for more than a year. Hogan Thompson drafted the amicus brief on behalf of the Texas Oil & Gas Association, which requested an appeal related to the invalidation of permit for a production sharing agreement (“PSA”) well drilled in the Eagle Ford Shale. Allocation and PSA wells have been the primary drivers of horizontal well development in the Texas oil and gas industry and integral to the state’s significant increases in production.

The Court expressly agreed with our argument that PSA wells are not the same as pooling, which could have a wide-ranging impact on the tens of thousands of PSA and allocation wells permitted in Texas. 

Hogan Thompson was honored to work again with the Texas Oil & Gas Association for this case. TXOGA is a statewide trade association representing every facet of the Texas oil and natural gas industry, including small independents and major producers. Collectively, the membership of TXOGA produces approximately 90 percent of Texas’ crude oil and natural gas, operates nearly 90 percent of the state’s refining capacity, and is responsible for the vast majority of the state’s pipelines. In fiscal year 2022, the Texas oil and natural gas industry supported 443,000 direct jobs and paid $24.7 billion in state and local taxes and state royalties, funding our state’s schools, roads and first responders.