The jury trial and appeal in the case of Mohican Oil & Gas, LLC v. Scorpion Exploration & Production, Inc. and Chapco, Inc. highlights the intricacies of contract disputes and business litigation matters in the oil and gas arena. Mohican hired the two other companies to oversee and drill Olmitos No. 2, a directional oil and gas well in Webb County, Texas. The jurors found that Mohican breached the oil and gas drilling contract and awarded Scorpion with $139,120 and Chapco with $60,000 in damages that the appeals case sustained.
Many facets of the contract were disputed during the trial. First, when Scorpion faced drilling process problems they asserted that the work changed from turnkey to daily charges. Scorpion had difficulties setting the intermediate casing and proceeding to production depths. They also encountered premature flowing and the wellbore fell in on itself. Also, Scorpion felt Mohican was obligated to provide them with a mudlogger to help drill the well, or at the very least, they were owed money for delays and damages incurred. The jury had to assess if Chapco served as the Texas Railroad Commission-named operator and answer numerous other questions.
“Individuals and businesses cringe when contract disputes arise and monies owed change along with timeline goals being missed,” said Gregory D. Jordan, Austin business attorney and Austin oil and gas lawyer. “No contract is perfect, but a good business attorney should be able to answer the tough questions when a client feels the contract they’ve entered into isn’t being upheld.”
With oil and gas exploration increasing, there is an increasing need for business attorneys with specialized knowledge in oil and gas exploration. Gregory D. Jordan has over 30 years of experience in the oil and gas industry as a petroleum landman, engineer and attorney. He represents individuals and businesses in trials, arbitrations, and mediations and has experience with the Railroad Commission and Texas Workforce Commission. Jordan has over 20 years experience as an Austin oil and gas attorney, Austin business lawyer and Austin business litigation attorney.