Texas Supreme Court Declines Review of Client Victory in “Rolling Termination” Dispute

December 14, 2018 – On December 14, 2018, the Texas Supreme Court declined to review a DGC client victory in a dispute over the meaning of a covenant-to-release clause in an oil-and-gas lease.  The Court’s decision leaves intact the El Paso Court of Appeals’s holding that Apache Deepwater, LLC did not lose previously developed acreage long after the expiration of the lease’s primary term.  DGC successfully argued on behalf of Apache that the clause’s language, read in harmony with the lease’s habendum and drilling-operations clauses, could mean only one thing:  the covenant-to-release was triggered once and only once.

Apache was represented by DGC shareholders Jad Davis, Ryan Clinton, and Jill Pennington.

The court of appeals’s opinion is available at the link below >


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