The Texas Lawbook Publishes Akin Gump Article on Blanket Conveyance Validity

The Texas Lawbook has published the article “Context Matters: Measuring the Validity of Blanket Conveyances,” written by Akin Gump partner David Sweeney and counsel Niki Roberts, along with associate Anthony Hilbert. The article looks at some recent cases pertaining to the validity of blanket conveyance grants and provides a framework for parties to assess their claims to minerals.

The authors begin with a look at how Texas courts have ruled in this area, noting that they have “generally upheld blanket property descriptions as satisfying the statute of frauds and constructive notice requirements.” From there, the authors turn to other states, looking at court rulings in Colorado, Delaware and Missouri.

The article then looks at the implication for bankruptcy, with Sweeney, Roberts and Hilbert writing that bankruptcy courts “ultimately apply the property law of the state in which assets are located in determining whether a blanket property description is valid.” The result, they add, “may have profound impacts on the relative positions of the parties involved.”

The authors conclude by advising that all interested parties “should be cognizant of the granting language in their security instruments and how this language might be interpreted under relevant state law.”

To read the article in its entirety, please click here.