Texas House Bill HCR151

Texas 2017 - 85th Regular

Caption

Taking notice that Gulf Energy Exploration Corp. has been fully compensated for the wrongful plugging of State Tract 708-S No. 5.

Impact

The resolution concludes that Gulf Energy Exploration Corp. has been fully compensated for its claims through a settlement recognized in court with Superior Energy Services, Inc. for $3 million. As a result, HCR151 formally indicates that Gulf Energy is no longer damaged by the incident in question and confirms that they have made whole the disputes arising from the wrongful plugging of the state tract. Furthermore, the concurrent resolution amends the potential award cap in any related lawsuits to zero, implying that no further claims can be made against the state for damages pertaining to this case.

Summary

HCR151 is a concurrent resolution that addresses the legal status of Gulf Energy Exploration Corp. following a settlement related to the wrongful plugging of State Tract 708-S No. 5. The bill notes that Gulf Energy had previously been granted permission to sue the State and the Railroad Commission of Texas under the terms outlined in Senate Concurrent Resolution 72 from the 81st Legislature. This previous resolution established a maximum award limit for damages that Gulf Energy could claim in any associated lawsuit, specifically capping the total award, including all court costs and attorney's fees, to no more than $2,500,000.

Contention

While the document does not provide specific opposition or contention around HCR151, similar resolutions often face scrutiny regarding state liability and the implications of legal settlements involving public funds. Concerns may typically arise around the accountability in the management of public resources and how such settlements affect future legislative and compensation frameworks. The nature of the resolution, which effectively eliminates future claims by Gulf Energy, could be perceived as controversial in the broader context of state financial responsibility and legal obligations toward corporations.