Client Alert: Important Developments In Retained Acreage Law

The Texas Supreme Court recently issued two opinions interpreting retained-acreage clauses in oil and gas conveyances. The lessees in both cases filed proration units with the Texas Railroad Commission and assigned less than all of the acreage covered by the leases to the proration units. In each case, the issue revolved around whether the lessee retained only the acreage assigned to the proration units or all of the leased premises. Different contractual language led the Texas Supreme Court to reach separate, but consistent, results.