Exxon Corporation and Exxon Texas, Inc. v. Emerald Oil & Gas Company, L.C.

Summary

The Supreme Court of Texas held that Texas Natural Resources Code section 85.321 creates a private cause of action for damages resulting from violations of applicable conservation laws, regulations, or orders. However, a subsequent mineral lessee lacks standing to sue for damage that occurred before the lessee acquired its interest, absent an assignment of the claim. The court reversed the court of appeals and rendered judgment that Emerald Oil & Gas take nothing.

Holdings

1. Section 85.321 creates a private cause of action for damages and other available relief for violations of the specified conservation laws, state laws prohibiting waste, or valid Railroad Commission rules or orders.
2. A subsequent lessee lacks standing under section 85.321 to sue a prior lessee for damage to the mineral interest that occurred before the subsequent lessee acquired its interest, absent an express assignment of the cause of action.
3. Because Emerald lacked standing to pursue a section 85.321 claim, it likewise lacked standing to pursue a negligence-per-se claim arising from the same alleged statutory violations.

Questions Presented

1. Whether Texas Natural Resources Code section 85.321 creates a private cause of action for damages resulting from violations of applicable conservation laws, Railroad Commission rules, or orders.
2. Whether a subsequent mineral lessee has standing under section 85.321 to recover for damage to the mineral interest allegedly caused by a prior lessee before the subsequent lessee acquired its interest.
3. Whether Emerald could maintain a negligence-per-se claim based on the same alleged statutory violations despite lacking standing under section 85.321.

Disposition

reversed