Court Affirms Drilling Extension for Range Based on City's Permitting Delays

FORT WORTH, Texas - A Texas appellate court has affirmed a bench verdict in favor of a gas and oil driller that sought to extend a contractual drilling deadline because of delays in obtaining the necessary municipal permit. Allegiance Hillview, L.P. v. Range Texas Production, LLC, et al., No. 02-10-00062-CV (Texas 2nd Dist. Ct. App.).

The Second District Court of Appeals held on July 28 that a "Force Majeure" clause in the Surface Use Agreement between landowner Allegiance Hillview L.P. and Rayzor Investments Ltd. applied to city permits sought by Rayzor's oil and gas lessee, Range Texas Production LLC.

Allegiance …