Texas Oil Court Fight Tests ‘Safe Harbor’ for Payment Pauses

A case with a decade-long legal journey, now at Texas Supreme Court for a second time, is poised to clarify when and how oil and gas operators can legitimately withhold lease payments while title disputes are ironed out.

A Texas law allows oil and gas operators to suspend lease payments if they have “reasonable doubt” about whether a “payee” has the right to receive payment related to the sale of the oil and gas.

A state appeals court sided against one such operator, saying reasonable doubt was a fact issue a jury should resolve.

That ruling is a “pretty significant ...