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Union Pacific Wins Dismissal of Lawsuit Raising Quiet Title Claim

June 23, 2022, 4:34 PM

Union Pacific Corp. won a bid to dismiss a lawsuit for improper venue over three oil and gas leases in Texas because the forum-selection clause was enforceable, a state appeals court said Thursday.

SM Energy Company is the lessee under three oil and gas leases. Union Pacific alleges that SM failed to pay for their leases according to the contract. The rail giant argued that SM was required to pay a certain sum of money as a bonus on a per-acre basis.

After receipt of a letter from Union Pacific’s counsel notifying them of the alleged breaches, SM offered to ...