OIPA Annual MeetingJune 8, 2008

Select Current Legal Issues and Trends Affecting theOil and Gas Industry

When in deep trouble, say nothing and try to look inconspicuous.

Stephens County Dist. Ct.Jury Verdict – May 9, 2008

Hebble v. Shell Western E&P Inc. and Shell Oil Company, No. CJ-95-234L

Damages: $13,205,916.00Punitive Damages: $53,625,000.00

BP Texas City Refinery Litigation

Plaintiffs Seek to Compel Production of Documents Used by BP to Compute the Reserve Amount Reported to the SEC for Potential Claims From the Explosion.

In re BP Products North America Inc., 2006 WL 2973037 (Tex. App. – Hous. 2006)

BP Texas City Refinery Litigation

Appellate Court directs the Trial Court to enforce discovery agreement and to disallow the deposition of Lord Browne, former CEO of BP.

In re BP Products North America Inc., Texas Supreme Court (No. 07-0119, Jan. 25, 2008). But see Crest Infiniti II, LP v. Swinton, 2007 OK 77, 174 P.3d 996.

Operating Agreement Disputes

Dispute Concerning the Method for Determining Salvage Value of Equipment on Well that was Proposed for Plugging and Abandonment. Mayfield Investments, Inc. v. Marjo Operating Co., Inc., 78 O.B.J. 2096 (Okla. App. 2007 - #103,271) (Not for Publication).

Royalties Owed UnderForced Pooling Orders

Decision Addressing Royalty Underpayment Claims With Regard to Royalties Owing Under Forced-Pooling Orders. In re Application of New Dominion, L.L.C., Cause CD No. 200606332-T (dated September 19, 2007)

Security Issues re Oil and Gas Facilities

Temporary Injunction Granted to Protect Against Public Disclosure of Detailed Data Concerning Location of Gas Pipelines and Related Information

Northwest Gas Ass’n v. Washington Utilities and Transp. Com’n, 168 P.3d 443 (Wash. App. 2007).

ROYALTY LAWSUITS Payments Made to Royalty Owners in

Nationwide Settlement of Crude Oil Posted Price Royalty Lawsuits Was a One-Time Bonus or Premium and Did Not Trigger the Duty to File Amended Severance Tax Returns. State ex rel. Okla. Tax Comm’n v. Sun Company, Inc. (R&M), 78 O.B.J. 1658 and 2146 (Okla. App. 2007 - #103,776) (Not for Publication) (Pending on Further Review by Oklahoma Supreme Court)

Other Active Areas of Litigation

Royalty computation issuesRelated Oklahoma Tax Comm’n SuitsQui Tam CasesExploration/Development/Venture DealsCondemnation