Guidance from Texas Courts on PSA Wells (or is it?)
The Texas 3rd Court of Appeals recently issued the Magnolia v. Opiela decision on Production Sharing Agreement (“PSA”) wells. While this case provides a nice history of pooling, allocation wells, and production sharing agreement wells, including some strong guidance that PSA wells do not implicate pooling concerns, I believe that the 3rd Court’s narrow ruling is as significant for what it does not cover, as for what it does.