Energy - Schiffer Hicks Johnson PLLC

We bring large-firm experience and careful attention to our work for energy industry clients, advising and representing both plaintiffs and defendants.

Contacts:Andrew S. Hicks,Logan E. Johnson

We have represented parties in complex disputes before international and domestic arbitrations, in federal and state trial and appellate courts throughout the United States, and before federal and state regulatory bodies. Our clients run the gamut from major industry players to independents, including upstream, midstream, and downstream entities, as well as power plant operators, oilfield service companies, state-owned energy companies, landowners, trading and marketing companies, private equity firms, and other energy industry investors.

For this diverse client base, we have litigated virtually every type of energy-related matter, including contract and accounting disputes; joint operating agreement disputes; disputes regarding the exploration, production, sale, distribution, and marketing of energy products; gas supply contract disputes; toxic tort claims; mineral interest and royalty disputes; environmental contamination matters; and commercial disputes, up to and including class action lawsuits.

Top-tier credentials

Many of our lawyers are former partners or associates from major international law firms, including Vinson & Elkins, King & Spalding, and Weil, Gotshal & Manges. They are consistently ranked at the top of their profession by peers and ratings publications, including Chambers USA and Global Arbitration Review. Others have joined us from the Civil Division of the United States Department of Justice and the Harris County Court Bench.

At Schiffer Hicks Johnson, we combine this experience with the superior service and responsiveness of a boutique litigation group. The result is “smart advice, efficiency, and great energy industry insight” (Chambers).

Related Experience

Representing the operator of several oil and gas wells in the Permian Basin (a large sedimentary basin in western Texas and southeastern New Mexico) in a case with more than $40 million at stake. We alleged that a subsidiary of Shell Oil Company had improperly injected saltwater waste from some of their nearby wells into our client’s producing formation zone instead of its own, which flooded out our client’s zones of production, thus damaging the reservoir and the ability to recover minerals our client had the right to develop.
Representing one of the largest exploration and production companies in the U.S. in a far-reaching indemnity dispute regarding decommissioning costs for federal offshore oil and gas leases off the coast of Santa Barbara, California. With more than $200 million in controversy (the cost to decommission the leases), the case hinges upon 30-year-old, multimillion-dollar purchase and sale agreements for the transfer of the subject leases that contain intricate, multifaceted indemnity obligations. This litigation lies at the intersection of regulatory issues arising out of the BSEE’s decommissioning order and complicated indemnity provisions between the two parties’ predecessors.
Representing an energy company in a dispute with an oil purchaser after the latter contracted the purchase of oil from certain wells operated by our client. Within a few months, the purchaser began paying our client lower rates for the oil after its downstream purchaser had requested the use of a different pricing index. While the purchaser contends that this agreement was made orally, the parties’ contract requires any such amendment to be made in writing. Our client withheld the amount owed under another purchase agreement and was sued by the purchaser. We were retained to defend our client’s entitlement to the withheld sum and its reliance on carefully negotiated contract terms pertaining to how the parties can amend the contract. The amount in controversy exceeds $1 million and involves compelling questions of contract modification and the role of custom and practice.
Representing an oil and gas operator in a $20 million dispute with an exploration and production company that involves claims arising from failure to pay joint interest billing to the mechanics of horizontal drilling to construction of the Model Form Joint Operating Agreement (JOA) promulgated by the American Association of Professional Landmen. One of the main claims concerns novel issues of JOA construction and the ramifications of an Authorization for Expenditure’s noncompliance with the strict terms of the JOA. This case is on the vanguard of a new trend in oil and gas litigation whereby judges and juries will be forced to grapple with the complexities that arise when decades-old operating agreements meet new technologies.
Represented the operator and joint owner of a large-scale oil and gas construction project in South Louisiana who alleged that the other owner owed millions of dollars in unpaid joint interest billings related to their assets. In response, the other owner filed a counterclaim arguing that our client had been grossly negligent or engaged in willful misconduct in its role as operator, resulting in damages of over $90 million, and was awarded $62 million in damages (which grew to $80.4 million with interest) after a month-long jury trial in Harris County, Texas. We appealed the judgment, and the Fourteenth Court of Appeals in Houston slashed the award to about $13.5 million.
Led a lawsuit pending in Illinois state court arising out of declaration of force majeure at one of nation’s largest coal mines, with $80 million-plus in controversy.
Represented an engineering and construction firm in a complex construction dispute in Halifax, Nova Scotia, seeking $170 million in damages for breach of contract arising from the construction by our client of an offshore gas production facility for a leading North American energy producer. The case involved more than nine million documents and numerous witnesses in Kuala Lumpur, Monaco, the Netherlands, Houston, Halifax, and Calgary, among others.
Represented client in a $200 million expert determination concerning the construction of a gas processing plant in west Texas and the execution of a Gas Treatment and CO2 Delivery Agreement. Despite conceding liability for substantial penalties owing due to our client’s failure to deliver contractually required volumes of CO2, we obtained a reduction in liability of approximately $20 million by arguing offsets from a separate contract between the parties and compensation for CO2 deliveries from a time period not contemplated by the contract.
Handled $11 million-dollar matter brought against client related to the purchase of one of client’s portfolio companies and an alleged breach of an escrow agreement by client. Prevailed at the trial court level on a motion for summary judgment. Plaintiff appealed and we prevailed again in a published opinion.
Represented a Fortune 100 oil and gas company in a $300 million breach of contract case related to the construction of major pipeline in west Texas and the producer’s failure to drill wells to supply gas to the pipeline. The case involved issues related to well economics, completion and fracking techniques, pipeline capacity, and pipeline construction. Settled on the eve of trial on highly favorable terms.
Represented one of the largest independent midstream companies in North America in a lawsuit related to the purchase of natural gas gathering and processing assets. Plaintiff asserted claims of breach of contract, fraud, tortious interference with contract, and tortious interference with prospective business relationship, and sought damages of $500 million. Obtained summary judgment on behalf of client, with court dismissing all of Plaintiff’s claims.
Represented Houston-based exploration and production company in a $20 million breach of warranty and product liability case against several steel manufacturing companies. Our client’s 18,000-foot horizontal well was rendered a complete loss when the defendant manufacturers’ casing separated during hydraulic fracturing operations. This case involved complex issues concerning the steel manufacturing process and attendant metallurgy, drilling and completions operations, and even the application of the laws of India to certain claims. After taking and defending over 30 depositions in roughly 45 days and defeating the defendants’ numerous dispositive motions, we settled favorably with all but one defendant.
Represented plaintiffs—two individuals and partners in a liquefied natural gas (LNG) project development company—in a usurpation of corporate opportunity and theft of trade secrets case. Filed suit in Texas state court against our clients’ former partners and the “new” company they had formed, alleging that they had improperly transferred the intellectual property and other assets created by the partnership for their benefit. Through extensive research, we were able to show numerous similarities between the original venture and the defendants’ “new” organization, including virtually identical business plans, marketing materials, and substantive work. We sought damages of $168 million; the case quickly resolved through a stock settlement that more than made our clients whole.
Represented energy industry client in a $100 million-plus domestic arbitration concerning the propriety of amounts charged by the operator under the parties’ joint operating agreement.
Represented major oil company in a dispute with LNG import facility regarding interpretation of our client’s long-term Terminal Usage Agreement. Due to substantial pre-dispute research and analysis, we were able to favorably resolve this roughly $400 million dispute through pre-arbitration negotiations.
Represented the claimant, an energy services company, in a domestic arbitration involving breach of warranty and indemnity action against a technology company in claims related to a defective computerized fleet management system implemented by the client. After a fast track arbitration in which all depositions, expert reports, pre-hearing briefings, and the evidentiary hearing took place in 30 days, we obtained a favorable award for our client on all claims.
Obtained dismissal of all claims against an Australian energy company client in a $100 million breach of contract/fraudulent inducement case relating to the attempted purchase of oil and gas assets located in Indonesia.
Retained to negotiate a walk-away and facilitate management relinquishing their ownership interest after tensions escalated at client’s portfolio company. After finding a series of fraudulent invoices, we obtained multimillion-dollar settlement for client. We then passed the information on to the Department of Justice and defendants were criminally prosecuted for embezzlement. Obtained summary judgment for all claims in case that revolved around plugging and abandonment charges we sought from subsequent owners of an offshore lease.
Defended investment fund manager that invested $80 million in an oil and gas exploration company in claims for shareholder oppression. Case involved complex procedural issues concerning the arbitrability of certain claims in disputes between private equity investors and founders or management of their portfolio companies.
Successfully represented a private equity firm in a multimillion-dollar dispute involving valuation and professional fees related to the purchase of a marine fuel business. Our client paid nothing and was indemnified for its legal fees.
Successfully prosecuted a multimillion-dollar breach of contract claim on behalf of a publicly traded utility company against a local power provider.
Representing a Fortune 100 exploration and production company in various royalty disputes.
Represented a Fortune 50 midstream company in litigation related to environmental damage and ground use restriction. Case was successfully settled on very favorable terms, with our client paying nothing.
Retained just four months before trial, represented the defendant, an oil and gas exploration and development company, in a conversion and negligence case. Plaintiff sought $25 million in actual damages and unspecified punitive damages based on a claim that our client produced gas (through casing leaks) from zones owned by plaintiff. After an eight-week jury trial, the jury returned a verdict in our client’s favor on all counts.
Represented the plaintiff net profits interest holders in a case related to excessive wastewater disposal charges totaling well in excess of $10 million. The case was favorably settled for our client on the eve of trial.
Representing a major energy company in a dispute with a gas processor related to damage caused by contaminated natural gas liquids delivered to our client’s refinery.
Represented a major energy company in an indemnity dispute related to potential environmental and personal injury liabilities associated with assets the plaintiff’s calcining company had purchased from our client. We obtained a dismissal of the plaintiff’s claims.
Representing a major energy company in multiple disputes with surface owners related to our client’s seismic exploration program. These cases have been filed in numerous counties throughout Texas and have involved obtaining temporary restraining orders and temporary injunctions to enable our client to complete its seismic operations.