Texas High Court Sides With Murphy In “Offset Well” Case

June 4, 2018

 

The Texas Supreme Court narrowly sided with Houston’s Murphy Exploration & Production Co. in a well contract legal case.

In a 5-4 decision, the court held that the “offset well” clause in two Eagle Ford shale leases simply required the company to drill a test well, but did not compel the company to protect the oil and gas under the property from drainage, Law360 reported Monday.

The high court reinstated a trial court’s earlier ruling in favor of Murphy, overturning an appeals court ruling that the term “offset well” has a standard and commonly-understood definition in oil and gas contracts.