Texas Supreme Court Turns Away Surface Estate Damages Dispute Against DGC Client

On March 5, 2021, the Texas Supreme Court denied the plaintiffs’ petition for review in Evans Resources, L.P. v. Diamondback E&P, LLC, case No. 20-0648. The appeal involved a dispute over when surface-damages payments became due under an oil-and-gas surface-use agreement executed along with an oil-and-gas lease. DGC appellate lawyer Ryan Clinton handled the case at the Texas Supreme Court for Respondent Diamondback E&P.

The plaintiffs argued that the surface-use agreement contemplated prepayment of $500,000.00 each for multiple horizontal well pads. Diamondback, on the other hand, construed the surface-use agreement as requiring payments for only for each horizontal well actually constructed. The court of appeals sided with Diamondback and the plaintiffs appealed. The Texas Supreme Court denied the petition.

Additional Information:
Court of Appeals opinion
Diamondback’s Response to Petition for Review