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.
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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.
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payments → accord → 1996
That arrangement changed after the well was shut in.
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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.
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Resources → move → 2021
Why Allegiant wanted to cross the ranch
Allegiant was not seeking access to restart production at the well.
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Allegiant → want → well
Its stated purpose was to plug the inactive well and remove the associated surface equipment.
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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.
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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.
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sides → attempt → terms
Lawson and others were able to visit the well initially.
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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.
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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.
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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.