On Oct. 1, the Texas Thirteenth Court of Appeals ruled that Allegiant Resources can cross the 1,604‑acre McFaddin Ranch to plug the Remora Oil Unit No. 1 well, citing Section 89.044 of the Natural Resources Code.
The court’s decision follows a 2004 permanent injunction that barred operators from using the ranch to reach the well; that restriction had been respected while the well was active. Allegiant’s predecessors paid more than ₹120,000 for access between 1996 and 2015, but stopped after the well was shut.
Allegiant, which took over the well in 2021, argued that leaving the well unplugged could release saltwater or crude oil, posing a threat to the nearby San Antonio River and risking regulatory fines. Allegiant spokesperson T. J. Ramirez told the trial court that the equipment was deteriorating and could contaminate groundwater.
Ranch owner Virginia L. Dierlam claimed the injunction protected her surface rights, but the court rejected the argument that Section 89.044 applies only to the property of the well’s surface owner. The judges wrote that the legislature did not limit the provision to a specific landowner category.
The ruling does not resolve the wider easement dispute, and the case will return to the trial court for a final determination. Allegiant plans to begin plugging work within weeks, while Dierlam has filed a motion to appeal the decision.