A report in the latest Ryder Scott Reservoir Solutions newsletter, based on a presentation by James Cowen and Jeffrey Elkin (Porter Hedges LLP) looks into ‘Legal issues in the low price environment.’ These include closer scrutiny by the SEC as the falling oil price forces proved undeveloped reserves into other reserves categories. Low prices have led to an increase in civil lawsuits and executives ‘may have to deal with subpoenas.’ Employment disputes increase during a downturn. Because Texas is an ‘at-will’ employment state, employees can be fired at any time with or without cause. Those with a non-compete contract may see their post-employment activities limited and Texas courts will generally enforce a non-compete when backed by an exchange of ‘valid consideration.’ Read the Porter Hedges presentation on the Ryder Scott website.
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