SCOTX Sides with Point Energy in Drilling Deadline Dispute

A scheduling error that a driller linked to a well collapse is insufficient evidence of an unforeseeable circumstance under a contract’s force majeure clause that prevented the driller from meeting a deadline, the Texas Supreme Court said Friday.

Oil and gas lawyers were watching the case for the court’s interpretation of the force majeure clause in the continuous-drilling program required of MRC Permian Company. Point Energy Partners Permian said MRC Permian’s lease was voided when it failed a requirement to drill a new well every 180 days. Point Energy signed a new lease with West Texas mineral owners after the drilling deadline was missed.