{"id":5905,"date":"2013-12-01T14:01:43","date_gmt":"2013-12-01T20:01:43","guid":{"rendered":"https:\/\/www.textrial.com\/oilfield-litigation-texas-trial-lawyers-association\/"},"modified":"2013-12-01T14:01:43","modified_gmt":"2013-12-01T20:01:43","slug":"oilfield-litigation-texas-trial-lawyers-association","status":"publish","type":"post","link":"https:\/\/www.textrial.com\/es\/oilfield-litigation-texas-trial-lawyers-association\/","title":{"rendered":"Oilfield Litigation, Texas Trial Lawyers Association"},"content":{"rendered":"

<\/a>I. SCOPE OF PAPER<\/h2>\n

This paper attempts to summarize recent case law developments with significance in the area of oilfield litigation.\u00a0 Special problems and resources to consider are also included.<\/p>\n

<\/a>II. BASIC DOCUMENTS; MASTER SERVICE AGREEMENTS AND DRILLING CONTRACTS<\/h2>\n

The Master Service Agreement is typically entered into between larger entities, and covers a number of operations throughout the United States.\u00a0 There is much litigation construing sections of the Master Service Agreement, which can entail risk-shifting agreements, waivers of workers\u2019 compensation subrogation rights, limits on the rights of control, and a number of other issues.\u00a0 See, for example, Nabors Corporate Services, Inc. v. Northfield Insurance Co., 132 S.W.3d 90, 92 (Tex. App.\u2014Houston [14th Dist., no pet.] 2004).\u00a0 You may wish to review the Master Service Agreement and read it with an eye toward the issues which are developing in your case.\u00a0 As Master Service Agreements change from time-to-time, you may wish to obtain copies of the Master Service Agreement from all parties subject to the Agreement to make sure that there are no material changes among the various versions in circulation.<\/p>\n

Drilling contracts come in different forms including \u201cTurnkey,\u201d \u201cDay Work,\u201d\u00a0 \u201cFootage,\u201d and a few other variations.\u00a0 The most common examples of these contracts are contained in various International Association of Drilling Contractor (IADC) forms.\u00a0 \u201cTurnkey\u201d drilling is an oilfield term for drilling a well for a fixed price.\u00a0 Much of the risk is allocated to the driller, as it is responsible for reaching a certain depth\/formation regardless of the time and resources spent on the effort.\u00a0 \u201cDay Work\u201d contracts and \u201cFootage\u201d contracts, on the other hand, typically allocate much of the risk to the developer of the well, as it can be in more control of the pace of drilling and activities involved in drilling.\u00a0 Again, both \u201cTurnkey\u201d and \u201cDay Work\u201d contracts have been discussed in published case law and are probably worth reviewing in any oilfield litigation relating to drilling.\u00a0 A good description of the differences in these different drilling contracts are found in Mohican Oil & Gas, LLC v. Scorpion Exploration & Production, Inc., 337 S.W.3d 310 (Tex. App.\u2014Corpus Christi 2011, no pet.)\u00a0and Melvin Green, Inc. v. Questor Drilling Corp., 946 S.W.2d 907 (Tex. App.\u2014Amarillo 1997, pet. denied).<\/p>\n