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Letter from the President April Luedecke, CDOA Inside this issue: President’s Letter 1 Luncheon Calendar 3 Luncheon Pictures 4 Education 6-7 Luncheon Parking 5 2nd VP’s Letter 8 Membership Update 9 Birthdays 10-13 Updates from the Director’s 14-16 Community 20 NADOA Institute 21 CDOA Information 22 Did You know 24-27 Sudoko 28, 31 Board of Directors 29 VOL 39, ISSUE 1 HADOA QUARTERLY 1st Quarter 2018 HADOA QUARTERLY Houston Association of Division Order Analysts Dear members, Two thousand and eighteen is the thirty-fifth anniversary for HADOA. Since 1983, it has seen an evolution from the days of entering data on ledger paper, punch cards and green screen, stored in paper files, on cassettes and floppy discs, to the sophisticated software and web-based storage we use today. We’ve been from Rolls Royce to ramen and back (more than once) and got the t-shirt. We are currently in a state of change as a nation, as an industry. Companies are tightening up overhead and consolidating assets. World politics are contentious and it’s reported that oil exports will be one of our most important bargaining chips. Executives are digging deep to find profits, leaving many of us wondering if we will land on sure footing or the chopping block. There’s nothing for it. We must dig deep and kick in with long hours and more work for the same pay. For some of us, it’s a familiar tune we’ve danced to now and again. For those newer to the industry, it’s been more like three years of the Macarena on replay – mildly amusing but in desperate need of change. HADOA is proud to have your support for all these years. And I am proud to be on this journey with you, supplying the country with a vital natural resource. It is a privilege to serve on the board of HADOA and continue the promotion of Division Order Analysts in the Houston area with opportunities for education and networking. April Luedecke, CDOA 2018 HADOA President [email protected] 1 1st VP’s 2

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Page 1: HADOA QUARTERLYhadoa.memberlodge.org/resources/Documents/1st... · Tony Crabs-Linn Operating, Inc. David Elliott-Independent Jennifer Flores-Ballard Exploration Company, Inc. Cheryl

Letter from the PresidentApril Luedecke, CDOA

Inside this issue:

President’s

Letter

1

Luncheon Calendar

3

Luncheon

Pictures

4

Education 6-7

Luncheon

Parking5

2nd VP’s

Letter 8

Membership

Update

9

Birthdays 10-13

Updates from the

Director’s 14-16

Community 20

NADOA

Institute

21

CDOA

Information

22

Did You know 24-27

Sudoko 28, 31

Board of

Directors

29

VOL 39, ISSUE 1 HADOA QUARTERLY 1st Quarter 2018

HADOA QUARTERLYHouston Association of Division Order Analysts

Dear members,Two thousand and eighteen is the thirty-fifth anniversary for HADOA. Since 1983, it has seen an evolution from the days of entering data on ledger paper, punch cards and green screen, stored in paper files, on cassettes and floppy discs, to the sophisticated software and web-based storage we use today. We’ve been from Rolls Royce to ramen and back (more than once) and got the t-shirt.We are currently in a state of change as a nation, as an industry. Companies are tightening up overhead and consolidating assets. World politics are contentious and it’s reported that oil exports will be one of our most important bargaining chips. Executives are digging deep to find profits, leaving many of us wondering if we will land on sure footing or the chopping block.There’s nothing for it. We must dig deep and kick in with long hours and more work for the same pay. For some of us, it’s a familiar tune we’ve danced to now and again. For those newer to the industry, it’s been more like three years of the Macarena on replay – mildly amusing but in desperate need of change.HADOA is proud to have your support for all these years. And I am proud to be on this journey with you, supplying the country with a vital natural resource. It is a privilege to serve on the board of HADOA and continue the promotion of Division Order Analysts in the Houston area with opportunities for education and networking.

April Luedecke, CDOA

2018 HADOA President

[email protected] 1

1st VP’s 2

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1st Vice President’s Reportsubmitted by Victoria Frey

Victoria Frey

2018 1st VP

[email protected]

The new year is off to a great start and I can’t believe that the 1st Quarter has flown by already! Our

January luncheon featured Matt Schlensker of Steptoe & Johnson, PLLC where we had 39 members

and 22 non-members in attendance. Mr. Schlensker’s presentation on retained acreage clauses

focused on the common (and not so common) examples of retained acreage clauses, how the Court

interprets them, and how leasehold owners can protect yourself from losing precious acreage.

In February, we hosted Paul Yale of Gray Reed & McGraw. Mr. Yale’s presentation, “To Waive or

Not to Waive” explored the many issues Oil & Gas Producers must overcome and ways to manage the

risk associated with a decision whether to waive or not waive a requirement found in an oil and gas

title opinion. We had 77 members and 37 non-members in attendance.

We have had two awesome luncheons this year, with many more to come. Thank you to all the

members and non-members who attended our January and February luncheons, and of course a huge

thank you to our great speakers! If you missed the January or February luncheon and would like

copies of the presentations, please feel free to reach out to me at [email protected].

Be sure to join us on April 18, 2018 where Tiffany Pollock, Vice President of Land & Regulatory at

Terra Energy Partners, will discuss the challenges that operators in Colorado face.

Is your company interested in advertising with

HADOA? If so, please contact Victoria Frey at

[email protected] or 713-961-8311.

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2018 LUNCHEON CALENDAR

April 18th

May 16th

June 13th– Summer Seminar

July 18th

August 15th

September- None (2018 NADOA Institute)

October 17th

November 7th

December 19th

*** subject to change

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HADOA Luncheons

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2nd Vice President’s Reportsubmitted by Stephanie Nguyen

This is the first newsletter for 2018, and we are off to an amazing start!With over 300 members, I believe we ALL can contribute to our quarterly newsletters. After all, this is your organization, too! We are looking for :-Fun Facts about our field & industry-Announcements about our peers & co-workers-Pictures of members & colleagues (yes, division order analysts are fun people, too!) -Subjects that you would like HADOA to expand on-Helpful, best practices (sharing is caring)Thanks to various HADOA mentors, I had a lot of fun serving on the Board and would love to talk to you about joining the 2019 Board!

Please email your ideas to me at [email protected]

Stephanie Nguyen, CDOA

2018 2nd VP

[email protected]

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Membership Update“Calling All Members….. “

Heather ListerThird Vice President

HADOA welcomes the following new members this quarter:

As we make our way through the turbulence of the industry please keep your HADOA contact information active in our records. If you have been laid off and your previous work email ad-dress is no longer valid, I may have updated your contact email to your alternate personal email so that you will continue to receive notices, newsletters and invites. So in the event you try to log-in to the HADOA site and your email is not valid, try your personal email and password. If you have any trouble getting into your account, please email us at [email protected]. HADOA is here to support during the tough times as well as the booms, so take full advantage of the opportunities and connections we can provide.”

Heather Lister

2018 3rd VP

[email protected]

Allix Prather - Fortis Minerals LLC Ashtyn Fregia- Kinder MorganBill Justice - WCJ Enterprise’sEric Fraga – OneMap Mineral Services LLC Jennifer Palma-Arena Energy LP Kristina Maldonado – Hilcorp Energy Laura Gauteson - Breitburn Mgt Co Lauren LaGrone - Hillcorp Energy Leanne Morris- Vitruvian Exploration IV Mason Payne – Anadarko Petroleum Meha Gargi - Noble EnergyMelinda Barton – LT Global Staffing Inc Melanie Petersen- Tower Rock Oil and Gas Nancy Chambers – StatOilRebeka Stringer- Castleton Resources Sabrina Cortes – Hess CorpWhitney Newton – Newfield Exploration

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Alexandra Villamar – Prime Energy Corp.

Andrea McAleer – Pettigrew & Pettigrew Land Svcs.

Angela Bryant – Vanguard Natural Resources

Bonnie Heallen – Anadarko

Cheryl Baker – Sheridan Production LLC

Deborah Godwin- Anadarko Petroleum

Demi Lanceslin – Sunoco Logistics

Eileen Faulk – EOG Resources, Inc.

Evelyn Mendoza- Goodrich Petroleum

Joan Jackson- BHP Billiton Petroleum

Kathy Warren – Energy Transfer Partners

Maryanne Merlock – GeoSouthern Energy

Paul Clements – Newfield Exploration

Patricia McCool – Sunoco Partners Marketing & Terminals

Rhonda Compton - Surge Energy

Rosemary Cruthirds- Castleton Commodities International

Scott Strahan- Apache Corporation

Scott Cameron – Independent

Travis Brown – Apache Corporation

Valerie Ratcliff - Independent

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Amy Galaviz-Newfield Exploration Company

Artricia Lewis-Chevron USA Inc.

Belinda Cathey-Alta Mesa Holdings LP

Bethany Payne-Hess Corporation

Betty Davidson-Cima Energy LTD

Brianna O'Keeffee-BP

Charlene Bilski-BP

Destinie Ross-Statoil

Devin Manning-Anadarko Petroleum

Ernie Leuenberger-Independent

Heather Lister-Carrizo Oil and Gas

Honey Overby -Sabine Oil & Gas, LLC

Kelly Hunt-Independent

Kymberley Johnson-Alta Mesa Holdings

Lauren Childress-Apache Corporation

Lindsey McGee-Fortis Minerals

Mae Jackson-Statoil

Meha Gargi-Noble Energy

Molly Regan-Hess

Nancy Chambers-Statoil

Rose Nguyen-Targa Resources, Inc.

Sabrina Cortes-Hess Corporation

Sandra Vasquez-Brandin-Sabinal Energy LLC

Sheila Herron-Hess Corporation

Silvia Davis-Regency Energy Partners

Sonja Widner-Sunoco Logistics LP

Tracy LeBlanc-Callon Petroleum

Valerie Turman-BHP Billiton

Victoria Frey-Fortis Minerals

Yolanda Powell-Occidental Oil & Gas Corporation

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Linda Barry-Independent

Yolanda Bazan-Hilcorp Energy

Frances Brown-P and P Land Services

Sherry Campbell-Ballard Exploration Company, Inc.

Stephanie Colson-Apache Corporation

Tony Crabs-Linn Operating, Inc.

David Elliott-Independent

Jennifer Flores-Ballard Exploration Company, Inc.

Cheryl Hampton-Lime Rock Resources

Debra Hardy-Chevron USA Inc.

Andrew Ivie-STATOIL

Debbie Kaufman-Statoil

Lisa Knott-BHP Billiton

David Krafve- Noonday Exploration, LLC

Jeremy Lang-Chevron

Felicia Lawal-Statoil Gulf Services LLC

Chris Nightingale-Cabot Oil & Gas Company

Priscila Rodriguez-Chevron North America

Christopher Roy-Stone Energy Corporation

Elizabeth Rucoba-Anadarko Petroleum Corporation

Debra Smith-Apache Corporation

Myriaya Taylor-Sunoco Logistics Partners LP

Phuong-Linh Tran-Newfield Exploration

Janie Ross Uresti-Ballard Exploration Company, Inc.

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Betty Cook-ConocoPhillips Company

Casey Gabel-GulfMark Energy

Chase Schwartz-Apache Corporation

Chelsy Fontenot-WildHorse Resources Management

Chris Griffin-BHP

Costatinos Pappas-Cabot Oil & Gas Corporation

Cyrus Perkins-BP America

Debbie Trichel -Chevron USA Inc.

Diane Jolly-EnerVest, Ltd.

Dorena Garza-Memorial Production Partners

Eileen Gelbmann-Sedita-Gastar Exploration TX LP

Eric Fraga-OneMap Mineral Services LLC

Jackie Hopkins-Castleton Commodities Inc

Jacqueline Powell-Plains Marketing LP

Kevin Lupton-Indigo Minerals LLC

Keyana Simmons-BHP Billiton Petroleum

Ladelle Roberts-Texas American Resources Company

Laura Gauteson-Breitburn Managment Company

Marla Fisher-Independent Consultant

Melinda Barton-LT Global Staffing, Inc.

Michele Lawton-Anadarko Petroleum

Patricia Williams-Gulfmark Energy Inc.

Phinetta Chinn-Hilcorp Energy Company

Randy Helms-TEAM

Sharon Tucker-Percheron Energy

Shelby Watson-Noble Energy

Stacey McHenry-Sr. Division Order Analyst

Tamera Treadwell-Hess

Vicki Danielson-Newfield Exploration Company

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Advertising— Dale Bender

Anyone wishing to advertise, either by posting on our website, posting in our Quarterly Newsletter, recognition at our monthly luncheon meetings or simply by contributing gift card awards as Door Prizes at our monthly luncheons, please feel free to contact me at [email protected].

Updates f rom the Directors

Employment Networking – Sandra Brandin

Hello everyone! In 2017, there were a total of twenty-six (26) listings! I’m pleased to announce that during my first three months as your Employment Networking Director, I’ve listed eleven (11) postings which is exciting because the market is picking up again! I work closely with oil and gas companies as well as interested recruiting agencies and assist with posting opportunities in our HADOA Job Bank. These opportunities range from short/long term contract to full-time jobs. Check into our job bank to see the available listing in different areas including out-of-state opportunities. On a side note, now we post job listings that involve any land administration role including lease analyst, land admin techs, land administrator, etc. Please encourage your colleagues to sign up as a member of HADOA so they can have access to our job bank as well! You will also see whenever there is a new job listing in LinkedIn, Twitter, and Facebook and will be directed to our Job Bank to view these opportunities! If you have any questions or have a job opportunity that you would like to post, my e-mail address is listed below!

Dale Bender- Advertisement Director [email protected]

Sandra Brandin-2018 Employment Networking [email protected]

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Corresponding Secretary’s Note

Corresponding Secretary— Jason Alexander

Jason Alexander 2018 Corresponding Secretary [email protected]

Dear Friends and Colleagues

I am excited and honored to be part of the 2018 HADOA Board. We have already learned about Retained Acreage from Matthew S. Schlensker and how to work with, and sometimes around, title requirements with Paul Yale at two very well attended luncheons. Our April luncheon shall feature Tiffany Pollock, VP of Land at Terra Energy.

There is a positive vibe in our industry right now. This is great to see as we, and many of our companies, are feeling more secure in still challenging times. There is a need for proven performers and dedicated professionals. Our luncheons and other activities can help with that. This is a great time to refine our skills, learn something new, and get better acquainted with our counterparts at other companies. Some may take the time to prepare for certification through NADOA. I know from our February luncheon that some have recently taken the exam. Best of luck to you and any others working towards this goal.

Please look for news and updates from HADOA in your e-mails and on Facebook, LinkedIn & Twitter. If you see anything amiss; please let me know so that any questions can be addressed or information clarified. Visit our Job Bank to see who may be coming to town or have additional needs

Wishing you a successful 2018!

Sincerely,

Jason J. Alexander

P. S. If anyone attending our monthly events would like a link to the presentations; please let me know.

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Care to share?

We need old HADOA pics for our 35th anniversary this year! Please bring photos to us at HADOA luncheons, or email to HADOA Historian: [email protected] All photos will be returned ASAP. THANK YOU THANK YOU THANK YOU THANK YOU THANK YOU

Memory Heirlooms

Spring is my favorite time of year! As April showers give way to May flowers, I look forward to robin’s eggs and rosebuds, and all things made new! Recovered from the Christmas rush and energized by the refreshment of winter’s final breath, I look forward to Easter gatherings.

Nearly ten years ago, at one such gathering, this furry fellow stole into our Easter Egg hunt with the family watching and waiting to see what he would find to do with a plastic egg, no doubt containing some delectable sweetie. As the little ones gathered treats below, this guy retreated to the safety of an oak branch high above, to survey the spoils.

Sadly, the oak tree that once provided entertainment on a sunny afternoon, had to be removed a few years ago. The memories, however, still live on! With each family gathering the cherished moments will be renewed and loved ones will be strengthened through the sense of belonging, sense of family.

This year, when I whisk away the messiness of spent meals and Easter egg remnants, the challenge will be, not just the sight of a clean and organized house, but memories that launch us into the challenges that lie ahead. Heirloom memo-ries that create in us a strength of character that mere calories can’t provide.

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COMMUNITY

Past Contributions - Follow up

Mike Navolio with Child International Legacy’s annual Mt. Kilimanjaro Clean Water Climb encouraged attendees to help provide secure, stable, and safe drinking water to Malawi villages by donating or by becoming a participant in Child Legacy’s annual Mt. Kilimanjaro Clean Water Climb. We were able to raise $1,630 through our annual holiday basket raffle. Along with member’s generosity, HADOA donated an additional $250 plus $416 with Hilcorp Energy Matching Program (who matched Yoli Bazan’s donation) which brings our total to a whopping $2,295 ! As a result, 2 water wells were repaired/built for 2 villages in Malawi!

If you are interested in donating further, please see Mike Navolio’s page for more information: http://www.cleanwaterclimb.net/kilimanjaro-team/mike-navolio/

2018 Volunteers

A big pat on the back for our HADOA members, Lauren LaGrone, Frances Vasquez, Christine Burton, Destinie Ross, Jason Alexander, Chelsea Rawls, Eryn Hyyah, and Heather Lister for helping the 2018 BP MS150. 230 packets were picked up and a total of $12,414 donations were collected!!

2017 Food Bank

In 2017, HADOA members generously donated $1,160.00 via holiday raffle prizes with HADOA matching additional $600.00 for a total of $1,260.00 to the Houston Food Bank. This contribution provided 5,280 meals to the Food Bank clients. Way to go, HADOA!

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45th Annual Institute September 5-7, 2018 Gaylord Opryland Resort

Nashville, TN

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CDOA Informat ion

Looking for additional ways to earn your CDOA credits? NADOA Webinars can now present to 500 members at once! Participate with a coworker or individually and turn in those CDOA points. Please contact [email protected] if you have any topics or speakers you’re interested in hearing.

Upcoming NADOA Webinars

http://www.nadoa.wildapricot.org/page-1709226

Congratulations to the HADOA members who recently obtained their CDOA:

Brianna O'KeeffeDiana Walters

Katherine (Kate) Wilson Murrell Kristy Peters

Stephanie NguyenThis is a great accomplishments and we are very proud of you!

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DID YOU KNOW???

NADOA WEBINARSLooking for additional ways to earn your CDOA credits? NADOA Webinars can now present up to 500 members at once! Participate with a coworker or individually and turn in those CDOA points. Please contact Yoli Bazan at ybazan@hilcorp if you have any topics or speakers you’re interested in hearing.

Is Your Cyber-Space Secure?The top of TOTAL Plaza in the Petroleum Club was the place to beat the Houston heat! Michael K. McMullen, Director, Global Information Security for Anadarko, took us through some interesting, yet alarming statistics of a few of the cyber attacks that surround us last year.For example, did you realize that 91% of all data breaches begin with e-mail? We should maybe think twice before we click on everything in sight. And one cannot afford to skirt the subject when naming cyber threats. Take a look at Mr. McMullen’s presentation to see a list of America’s major cyber threats. A copy will be available soon!UNKNOWN callers blowing up your phone? Do not answer! If you must talk to them or risk missing the opportunity of a lifetime, return the call. There is less risk with an outgoing call than one incoming. As Michael reminded us though, if it’s legit, they will leave a message. Years ago our daughter informed me “Everyone knows FB is not real!” And sadly enough, same goes for many of our unseen contacts or friends.If you have a major cyber-security issue, please report it to IC3.gov.

Joyful purposeBy Ralph MarstonDiscard the doubts. Focus on the work.Ignore the distractions. Glide right on past the interruptions.You have good, meaningful, significant work to do. Don't let shallow, trivial things get in your way. Expel all the negativity, worries, and excuses from your awareness. Breathe in fresh new energy, enthusiasm, vision, and put it all to use.Feel the joy, the rightness of making good things happen. Remind yourself how silly it is to let anything get you down.Look forward, and see all the great value there is to create. With joyful purpose, keep bringing that value to life.

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DID YOU KNOW???

Off-site Drilling: Lightning Oil Company v. Anadarko E&P Onshore, LLCBy: Melissa A. Munson, Steptoe & Johnson PLLCCan an oil and gas operator drill through the mineral estate underlying an adjacent tract of land without the adjacent lessee’s permission?

In Lightning Oil Company v. Anadarko E&P Onshore, LLC, the court said yes. Lightning Oil Co. v. Anadarko E&P Onshore, LLC, 520 S.W.3d 39 (Tex. 2017). Who was involved, and when and where did this take place: In 2009, Anadarko E&P Onshore, LLC entered into an oil and gas lease with the Texas Parks and Wildlife Department covering the Chaparral Wildlife Management Area in LaSalle and Dimmit Counties. The terms of the lease required Anadarko to locate drill sites off of the Chaparral Area whenever “prudent and feasible.” Id. at 43. Anadarko tried first to secure a surface agreement from the Texas Parks and Wildlife Department and was unsuccessful. The tract adjacent to the Chaparral Area had split surface and mineral ownership; the surface was owned by Briscoe Ranch, Inc., while the minerals were owned by the Hurd family. In 2009, the Hurds leased the minerals to Lightning Oil Co. Anadarko entered into an agreement with Briscoe Ranch, the surface owner of the adjacent tract, to locate a drill site on the Ranch tract close to the property line between the Ranch and the Chaparral Area. Anadarko’s plan was to drill vertical wellbores through the mineral estate underlying the Ranch and then “kick-off” horizontally to access its leased minerals under the Chaparral Area. Why did the parties go to court:Lightning was not a party to the agreement between Anadarko and Briscoe Ranch, and when Anadarko staked out its first well site, Lightning objected not only to the proposed site but to Anadarko drilling from any location on the Ranch. Anadarko entered into a surface use and subsurface easement agreement with Briscoe Ranch specifically authorizing Anadarko to locate wells on the surface of the Ranch, drill through the subsurface and use those wells to produce minerals from the Chaparral Area. Lightning filed suit alleging Anadarko committed subsurface trespass on Lightning’s leased mineral estate and tortious interference with its mineral lease. Lightning sought a temporary restraining order and an injunction to prevent Anadarko from drilling on the Ranch. Both parties filed motions for summary judgment. Lightning claimed that Anadarko’s drilling activities could cause harm due to the potential for damage to Lightning’s minerals, the need to drill additional offset wells to prevent drainage, and interference with Lightning’s drilling plans.How did prior courts view this issue: Prior to this case, Texas courts had held generally that a mineral lessee could be entitled to injunctive relief if it could show well surface locations interfered with its rights under the mineral lease. Humble Oil & Ref. Co. v. L & G Oil Co., 259 S.W.2d 933, 938 (Tex. Civ. App. – Austin 1953, writ ref’d n.r.e.). The general rule was refined a few years later when a court held that to prove such interference, the mineral lessee must show that he needed the surface location being used at that time and place. Atlantic Ref. Co. v. Bright & Schiff, 321 S.W.2d 167, 169 (Tex. Civ. App. – San Antonio, 1959, writ ref’d n.r.e.). In both of these cases the adjacent tract’s surface owner agreed to the use of the surface location and conduct of the subsurface operations by the oil and gas operator.

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DID YOU KNOW???

Off-site Drilling: Lightning Oil Company v. Anadarko E&P Onshore, LLCBy: Melissa A. Munson, Steptoe & Johnson PLLCCan an oil and gas operator drill through the mineral estate underlying an adjacent tract of land without the adjacent lessee’s permission?

In one Texas case departing from precedent, in which the surface owner of an adjacent tract approved the use of the surface, the surface lessee of such tract objected to the surface usage and the mineral lessee opposed the subsurface conduct, the court determined there would necessarily be damage to the oil, gas and mineral formation, as well as damage to the surface lessee. Chevron Oil Co. v. Howell, 407 S.W.2d 525, 528 (Tex. Civ. App. – Dallas 1966, writ ref’d n.r.e.). What did the courts decide here:The trial court granted Anadarko’s motion for partial summary judgment. The court of appeals affirmed, noting that “the surface estate owner controls the earth beneath the surface estate” and that “absent the grant of a right to control the subterranean structures in which the oil and gas molecules are held, the mineral estate owner does not control ‘the mass that undergirds the surface.’” Lightning Oil Co. v. Anadarko E & P Onshore LLC, 480 S.W.3d 628, 635 (Tex. App. – San Antonio 2015, aff’d sub nom. Lightning Oil Co. Anadarko E &P Onshore, LLC, 520 S.W.3d 39 (Tex. 2017)). The Supreme Court determined that Lightning’s claims turned on “whether a lessee's rights in the mineral estate includes the right to preclude a surface owner or an adjacent lessee's activities that are not intended to capture the lessee's minerals, but rather are intended only to traverse, or bore through, the formations in which the lessee's minerals are located.” Lightning Oil Co., 520 S.W.3d at 46. The primary issue under consideration was whether Andarko’s proposed drilling activities constituted a trespass. The court broke the claim into two inquiries: the first being whether Anadarko’s drilling would interfere with Lightning’s use of the surface and subsurface and the second being whether Anadarko’s drilling would interfere with Lightning’s enjoyment of the minerals. The court considered the three primary principles relied on by the court of appeals regarding ownership and control of the subsurface: (1) the surface overlying a leased mineral estate is the surface owner’s property, including the geological structures beneath the surface, (2) the surface owner, and not the mineral owner, owns all non-mineral molecules of land, and (3) the mineral estate owner is only entitled to a fair chance to recover the oil and gas in place. The court of appeals concluded that Lightning could not exclude Anadarko because Lightning “does not own or exclusively control the earth surrounding any hydrocarbon molecules”, and because Lightning did not have the right to exclude Anadarko, Anadarko could not be trespassing on Lightning’s property. Lightning Oil Co., 480 S.W.3d at 635.

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DID YOU KNOW???

Off-site Drilling: Lightning Oil Company v. Anadarko E&P Onshore, LLCBy: Melissa A. Munson, Steptoe & Johnson PLLCCan an oil and gas operator drill through the mineral estate underlying an adjacent tract of land without the adjacent lessee’s permission?

The court agreed that the surface owner controls the mass that undergirds the surface, but advised that such ownership did not necessarily mean the surface owner could make or permit physical intrusions where the minerals are located and remove those minerals. The court explained that when the mineral estate is severed from the fee simple, five rights, often referred to as the “bundle of sticks,” are conveyed to the transferee, including the right to develop, lease, receive bonus payments, receive delay rentals and receive royalties. As an oil and gas lessee, Lighting was granted to the right to develop under a lease, which right includes the right to explore, obtain, produce and possess the minerals subject to the lease, but not the right to possess the place where the minerals are located. Thus, the court determined that “an unauthorized interference with the place where the minerals are located constitutes a trespass as to the mineral estate only if the interference infringes on the mineral lessee's ability to exercise its rights.” Lightning Oil Co., 520 S.W.3d at 49. Considering whether Anadarko’s proposed operations infringed Lightning’s ability to develop, the court held, first, that Lightning had not offered proof that the Railroad Commission drilling regulations concerning the location and number of wells were insufficient to preserve Lightning’s rights and second, that Lightning’s leased mineral estate remained the dominate estate subject to the accommodation doctrine, meaning Anadarko had no rights to use the surface greater than what Briscoe Ranch as the surface owner had. Considering whether Anadarko’s proposed operations interfered with the minerals themselves, the court agreed with Lightning that Anadarko’s drilling activities would necessarily extract minerals embedded in the ground to which Lightning would otherwise be entitled, but that the quantum of minerals which would be removed would be small. The court weighed the relevant interests of society and the oil and gas industry against the interest of an individual operator and concluded that if Anadarko’s proposed activities were a non-actionable interference with Lightning’s rights, the policy of the state of Texas to encourage recovery of minerals and minimize waste would outweigh the minimal loss of minerals Lightning might suffer.

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SUDOKU

See solution at the end of the newsletter

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PresidentApril Luedecke, CDOA [email protected]

3rd Vice President Heather [email protected]

Treasurer Jennifer [email protected]

Historical Director Cosette Barnett [email protected]

House & Hospitality Director Sara Galloway [email protected]

Employment Networking Dir.Sandra [email protected]

Advertising & PR Director Dale Bender [email protected]

Business & Rules DirectorChristine Burton [email protected]

2018 BOARD OF DIRECTORS

2nd Vice PresidentStephanie Nguyen, CDOA stephanie.nguyen@nexteraenergy .com

Recording Secretary Jason Alexander [email protected]

Ways & Means Director Kassi [email protected]

Immediate Past President Lucretia Jones [email protected]

1st Vice PresidentVictoria [email protected]

Corresponding Secretary Lyndsay Romano, CDOA [email protected]

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Houston Associa t ion of Divis ion Order Analysts

The Houston Association of Division Order Analysts was established to service the needs of the Greater Houston Division Order

Analysts community.

The purposes of the Association are:

Advance the education, knowledge and professional interests of Division Order Analysts

Promote effective communication within the petroleum industry and the public

Enhance the image and stature of the Division Order Analyst work as a profession

Provide more opportunities for achieving these objectives

HADOA

P.O. Box 25377

Houston, Texas 77265-5377

Houston Association of Division Order Analysts

www.hadoa.org

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SUDOKU

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