Joe L. Lovell

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Joe L. Lovell argued before the Texas Supreme Court in BP America Production Co. v. Red Deer Resources LLC. (Cause #15-0569) on Thursday, January 12, 2017. This case addressed whether a gas well operator can extend the life of an oil and gas lease by tendering a shut-in royalty when the gas well is incapable of production in paying quantities at the time the well is shut in. Established case law says that the gas well must be capable of production in paying quantities, meaning that it will produce gas in paying quantities if the well is turned back on, without additional equipment or repair. The jury found that the well in question, which had less than 1% remaining reserves to produce and had completely stopped flowing gas for eight days before BP shut it in, was not capable of producing in paying quantities when it was shut in. The trial judge entered a judgment on the jury’s verdict declaring that BP’s lease terminated. BP argues that the well could not have been incapable of production in paying quantities at the time the well was shut in because the jury determined that the well had not failed to produce in paying quantities before being shut in, when measured over an extended period before it shut in the well rather than at the time of shut-in. In the late summer of 2013, John Lovell, Joe Lovell, and Brian Farabough tried this case in Lipscomb, Texas to a successful verdict and judgment for their client Red Deer. The Amarillo Court of Appeals affirmed the trial judge. Joe will ask the Supreme Court to respect the proper instructions by the trial judge, the verdict of the jury, and the trial court’s judgment terminating BP’s lease.

To watch a live broadcast of oral arguments in this case follow this link: http://www.texasbarcle.com/CLE/TSC.asp. This will be the third case heard that day, so arguments should begin approximately 10:40 a.m. Archived video of the argument can also be viewed thereafter on the same link.

If you would like to watch Joe’s previous oral arguments before the Texas Supreme Court, you can follow the links below and search for the following cases either by cause number or originating county:

BP AMERICA PRODUCTION CO. V. LADDEX LTD. (15-0248) - view video 
10/11/2016 @ 9:50 AM (length 41:44) 
Originating county: Roberts County 
Originating from: 7th District Court of Appeals, Amarillo

Joe L. Lovell argued before the Texas Supreme Court in BP America Production v. Laddex, Ltd. (Cause #15-0248) on Tuesday, October 11, 2016. This was the second case heard that day, so arguments began approximately 9:45 a.m. This case addressed how a trial court is to instruct the jury in determining whether an oil and gas lease terminated for failure to produce in paying quantities, and whether the intent of the parties to a new lease will be overridden by the rule against perpetuities. In this case, the well failed to produce an operating profit for 15 consecutive months, at the end of which, BP’s own engineers recommended that the well be plugged and abandoned. In the summer of 2013, Joe, together with partner Brian Farabough, tried this case to a successful verdict and judgment for his client Laddex, the owner of the new lease. Joe asked the court to respect the proper instructions by the trial judge, the verdict of the jury, and the trial court’s judgment terminating BP’s lease.

January 2016

DANIEL GREER AND FIX THE FACTS FOUNDATION V. SALEM ABRAHAM CONSOLIDATED FOR ARGUMENT WITH 14-0987 (14-0669) - view video

MICHAEL QUINN SULLIVAN V. SALEM ABRAHAM CONSOLIDATED FOR ARGUMENT WITH 14-0669 (14-0987) - view video 
1/14/2016 @ 10:40 AM (length 52:06) 
Originating county: Hemphill County 
Originating from: 7th District Court of Appeals, Amarillo

January 2013

PHILLIPS PETROLEUM COMPANY, GPM GAS CORPORATION, PHILLIPS GAS MARKETING COMPANY, PHILLIPS GAS COMPANY, AND GPM GAS TRADING COMPANY V. ROYCE YARBROUGH (12-0198) - view video

IN RE CONOCOPHILLIPS COMPANY F/K/A PHILLIPS PETROLEUM COMPANY, DCP MIDSTREAM, LP F/K/A GPM GAS CORPORATION, CONOCOPHILLIPS GAS COMPANY F/K/A PHILLIPS GAS COMPANY, AND DCP MIDSTREAM MARKETING, LLC F/K/A GPM GAS TRADING COMPANY (12-0199) - view video 
1/10/2013 @ 10:40 AM (length 43:08) 
Originating county: Fort Bend County 
Originating from: 14th District Court of Appeals, Houston

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