Landman Publishes Akin Gump Article on 5th Circuit Decision in Surface and Mineral Estate Holders’ Dispute

“Striking the Balance – Enforcing surface restrictions on mineral estate in Mississippi following Petro Harvester v. Keith,” an article by Akin Gump corporate partner Stephen Boone, counsel Niki Roberts and associate Anthony Hilbert, has been published by Landman magazine.

The article looks at a recent decision by the 5th U.S. Circuit Court of Appeals that highlights what the authors call “the continued tensions between surface estates and mineral estates in oil and gas producing areas.” They note that the decision in Petro Harvester Operating Co. LLC v. Keith “reiterates the dominance of the mineral estate” but provides insight into “a developing area of conflict and considerations for analyzing potential contractual surface restrictions placed on the mineral estate.”

The authors begin by providing context regarding the separation of the mineral estate from the surface estate in property law in the U.S. and introduce the issues treated in the decision. They then dive into a case summary that discusses the players and the specifics of the litigation, both at trial and on appeal. They follow with a discussion of general use principles, the accommodation doctrine and surface owner protections before closing with a section on the implications of this decision.

They conclude by noting, “The nature of the limitations themselves, the parties that entered into the instruments, and the timing and documentation surrounding the instruments under which they appear may all impact the enforceability thereof and potentially result in a contracting party receiving something less than what was originally bargained for in the plain words set forth in the underlying agreement at issue.”

To read the full article, click here.