• Skip to content
  • Skip to primary sidebar

liskow_lewis_white_new

future-focused

  • Team
  • Practices
  • Insights
  • Perspectives
Blogs

U.S. Fifth Circuit Finds Contractual Claim Under JOA Not Impermissible “Collateral Attack”

05.04.10 | less than a minute

By Robert L. Theriot

In EOG Resources Inc. v. Chesapeake Energy Corp., No. 09-30362, __ F.3d __ (5th Cir. 4/29/10), the Fifth Circuit reinstated EOG’s contractual claim against Chesapeake under the parties’ joint operating agreement (JOA).  EOG claimed that Chesapeake had unilaterally drilled three wells in the parties’ pooled mineral leases in Bossier Parish, Louisiana, without first obtaining EOG’s written consent as required by their JOA.  The trial court dismissed EOG’s claim, finding the contractual claim was barred as an impermissible “collateral attack” on the orders of the Louisiana Commissioner of Conservation, because the Commissioner had approved Chesapeake’s application to drill the wells as alternative unit wells for the pooled zones.  On appeal, the Fifth Circuit reversed and vacated.  It found that EOG’s contractual claim was not barred as a collateral attack on the Commissioner’s orders and remanded for a determination of EOG’s claims.  The author represented EOG in the trial court and on appeal.

The Fifth Circuit found that there was no collateral attack on the Commissioner’s orders on three grounds:  First, EOG was not seeking any relief that was contrary to the orders.  The Commissioner’s orders approved the well applications, but they did not compel Chesapeake to drill the wells, nor did EOG seek to enjoin the wells from being drilled.  Second, EOG did not challenge any of the factual findings of the Commissioner.  Third, the Court concluded that only the courts, and not the Commissioner, had the authority to resolve EOG’s contractual claims under the JOA or its request for relief through an accounting.  In deciding these issues, the Court clarified the line between the Commissioner’s authority to impose forced pooling under Louisiana’s unitization statute and its lack of authority to modify, limit, or determine contractual rights under a voluntary pooling or operating agreement.

Primary Sidebar

Liskow & Lewis, APLC
Arrow Icon

future-focused

  • Baton Rouge
  • Houston
  • Lafayette
  • New Orleans
  • New York City
  • © 2026 Liskow & Lewis, APLC
  • Sitemap
  • Disclaimer
  • Employee Login
Site by
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
  • Team
  • Practices
  • Insights
  • Perspectives
  • Offices
  • Pro Bono
  • About Us
  • Careers
  • DEI
  • The Energy Law Blog
  • Gulf Coast Business Law Blog
  • The Maritime Law Blog