A long-running dispute over access to a South Texas ranch has ended with a Texas appeals court allowing an oil company to cross private property to reach an inactive well.
asserted
company → run → well
The dispute involves the McFaddin Ranch and Allegiant Resources LLC, which sought access to a well that had been shut in for years.
asserted
that → involve → years
According to the Texas Thirteenth Court of Appeals’ October 1 opinion, the well sits close to the San Antonio River, raising concerns about leaving it unplugged.
uncertain
well → accord → it
The court ultimately affirmed the trial court’s decision, upholding Allegiant’s limited right to enter the property for plugging and related work.
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court → affirm → plugging
A dispute over access to a well
The case centres on the Remora Oil Unit, an oil and gas operation located on property known as the Wright Land.
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case → centre → Land
Access to the well had historically been provided through the Dierlam Ranch, which is associated with the McFaddin Ranch property.
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which → provide → property
Allegiant’s predecessors used a road across the ranch and made payments for access.
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predecessors → use → access
According to testimony cited by the appeals court, those payments totalled more than $120,000 between 1996 and June 2015.
uncertain
payments → accord → 1996
That arrangement changed after the well was shut in.
asserted
well → change → ?
The payments stopped, and the landowners and later operator were unable to reach a new agreement over access.
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landowners → stop → access
The dispute eventually moved into court after Allegiant Resources became the operator of the Remora Oil Unit in 2021.
asserted
Resources → move → 2021
Why Allegiant wanted to cross the ranch
Allegiant was not seeking access to restart production at the well.
asserted
Allegiant → want → well
Its stated purpose was to plug the inactive well and remove the associated surface equipment.
asserted
purpose → plug → equipment
The company argued that leaving the well unplugged created environmental and regulatory risks.
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leaving → argue → risks
Lee Lawrence Lawson, Allegiant’s HSE director, testified that the location was particularly concerning because the well was close to the San Antonio River.
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well → testify → River
According to the court's opinion, Lawson said the company could face serious consequences if it could not complete the required work.
uncertain
it → accord → work
These included potential action by the Texas Railroad Commission and significant financial losses.
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These → include → Commission
He estimated the company's potential losses at about $50 million.
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He → estimate → million
The well had also been inactive for more than a decade, meaning Allegiant needed to remove surface equipment as part of the plugging process.
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Allegiant → mean → process
The landowners refused access
The ranch owners did not agree to provide the requested access.
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owners → refuse → access
Allegiant had attempted to negotiate with Mark Clayton Dierlam, an owner and manager of the ranch, beginning in 2021, but the two sides could not agree on financial terms.
uncertain
sides → attempt → terms
Lawson and others were able to visit the well initially.
asserted
Lawson → visit → well
But after an August 2022 visit, Dierlam refused further access to the ranch.
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Dierlam → refuse → ranch
That left Allegiant with a practical problem.
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That → leave → problem
The company had responsibility for the well but could not reach it without crossing property controlled by the ranch owners.
uncertain
company → have → owners
The dispute eventually became a question of property rights: could the operator legally enter the neighbouring ranch when its purpose was to comply with obligations to plug an inactive well?
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purpose → become → well
What the appeals court decided
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decided → decide → What
The Texas Thirteenth Court of Appeals sided with Allegiant on October 1, affirming the trial court's ruling.
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Court → side → ruling
The appeals court concluded that Allegiant could cross the Dierlam Ranch for the limited purpose of accessing and plugging the Remora Oil Unit.
uncertain
Allegiant → conclude → Unit
The decision does not give the company unrestricted use of the ranch.
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decision → give → ranch
Instead, the ruling concerns access needed to carry out the work associated with the inactive well.
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ruling → concern → well
The court's decision also considered the regulatory responsibilities surrounding abandoned or inactive oil wells.
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decision → consider → wells
Allegiant argued that it needed access to comply with requirements imposed by the Railroad Commission.
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it → argue → Commission
A ranch with a long South Texas history
The property involved in the dispute is connected to the long history of McFaddin Ranch, whose roots date to the 19th century.
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roots → involve → century
According to the ranch's own history, James A. McFaddin established his first ranch in the area in 1858, while the Victoria County operation dates to 1877.
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operation → accord → 1877
The property later grew into a major South Texas ranching operation, with cattle, land management and conservation becoming central parts of its identity.
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cattle → grow → identity
The ranch's history also includes the development of land between the Guadalupe and San Antonio rivers.
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history → include → rivers
James McFaddin engineered more than 40 miles of levees, reclaiming about 5,000 acres of land that had previously been swampland.
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that → engineer → land
Today, the ranch continues to operate as a working South Texas property, with cattle and ranching remaining part of its activities.
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cattle → continue → activities
What the ruling means
The case illustrates the tension that can arise when private land ownership intersects with the obligations attached to oil and gas wells.
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ownership → mean → wells
…and 4 more, not listed.
The Aporia
