Apache Wins Oil Lease Battle, Secures $4.8M in Legal Fees.
Texas Appeals Court Upholds Apache Corp.’s Win in Oil & Gas Lease Dispute.
The Texas Court of Appeals Eleventh District has upheld a trial court ruling in favor of Apache Corp. in a long-running oil and gas lease dispute. The decision affirms a $4.8 million attorney’s fees award for Apache while rejecting all claims from the appellants: Apollo Exploration LLC, Cogent Exploration Ltd. Co., and Sellmoco LLC.
Appeals Court Rules Unanimously for Apache
On March 6, 2024, a panel of three justices ruled unanimously in Apache’s favor:
- Chief Justice John M. Bailey
- Justice W. Stacy Trotter
- Senior Chief Justice Jim R. Wright
Justice W. Bruce Williams did not participate in the decision.
The case originated in the 385th District Court in Midland County, where the court granted Apache’s no-evidence motion for partial summary judgment. The ruling found that Apollo, Cogent, and Sellmoco failed to present sufficient evidence to support their claimed damages.
The appellate court upheld this decision, stating:
“Accordingly, because Appellants can provide no evidence of the amount of their claimed damages, we conclude that the trial court did not err when it granted Apache’s no-evidence motion for partial summary judgment as to damages.”
Case Background: A Decade-Long Legal Dispute
The lawsuit stems from a 2011 oil and gas transaction involving:
- Apollo Exploration LLC
- Cogent Exploration Ltd. Co.
- Sellmoco LLC
- Gunn Oil Company
These companies collectively held a 98% working interest in 109 oil and gas leases covering more than 120,000 acres in the Texas Panhandle.
On March 22, 2011, the companies sold 75% of their working interests to Apache, signing separate purchase and sale agreements.
In 2014, Apollo, Cogent, and Sellmoco filed a lawsuit against Apache, alleging:
- Breach of contract
- Various tort claims
- Requesting declaratory relief
The case spanned multiple legal proceedings, including:
- Expert witness exclusions
- Summary judgment motions
- Appeals
The legal battle lasted so long that the original trial judge retired before the appeal was resolved.
Key Legal Issues in the Appeal
The appeal focused on two main questions:
1. Did the trial court wrongly exclude expert testimony on damages?
The appellants claimed the court erred by striking expert witness Peter Huddleston’s opinions on damages, which they argued were key to their case.
2. Did the court correctly grant Apache’s no-evidence motion for summary judgment?
The appellate court sided with Apache, finding that the plaintiffs failed to provide evidence quantifying their damages, which was essential to their claims.
Because of these findings, the court ruled that Apache was entitled to a complete victory.
Attorneys Decline to Comment
Lawyers representing Apollo, Cogent, and Sellmoco—including:
- Bradley H. Bains and David W. Lauritzen (Cotton Bledsoe Tighe & Dawson, PC)
- Patrick A. Zummo (Houston)
- Zona Jones (Beaumont)
Did not respond to requests for comment.
Similarly, Apache’s legal team—including:
- Tim McConn (Yetter Coleman LLP, Houston)
- Stephen B. Crain (Bracewell, Houston)
- Harper Estes (Midland)
Either declined to comment or did not respond.
What’s Next?
With this ruling, Apache Corp. secures a significant legal win and is entitled to $4.8 million in attorney’s fees. It is unclear whether Apollo, Cogent, and Sellmoco will pursue further appeals.
Would you like updates on the next steps in this case? Let us know in the comments.
