How two U.S. Supreme Court decisions could lead to arbitration agreements in oil and gas leases

It is becoming "increasingly common" for royalty owners to file class-action lawsuits related to royalty issues in both "state and federal court." Because of this, oil and gas producers are considering avoiding the "costs and risks involved in class action litigation" by utilizing arbitration clauses in their oil and gas leases, which would "require all disputes to be resolved in a private and confidential arbitration setting and would prevent a royalty owner from combining his claim" with similar claims. Although the enforceability of these clauses is not guaranteed, two recent U.S. Supreme Court decisions have "endorsed the use of arbitration/class waiver clauses." A recent oil and gas alert from the law firm of K&L Gates explores how AT & T Mobility, LLC v. Concepcion and American Express Co. v. Italian Colors Restaurant could impact oil and gas leases.

National, Oil & Gas Litigation