The Texas Thirteenth Court of Appeals, on Oct. 1, granted Allegiant Resources LLC limited rights to cross the McFaddin Ranch for the purpose of plugging the abandoned Remora Oil Unit, a well that has sat idle since 2011.
Allegiant had previously paid more than $120,000 for a road across the ranch from 1996 to 2015, but the payments stopped when the well was shut in. The ranch owners and Allegiant failed to negotiate a new fee, leaving the operator without a legal way to reach the site.
Allegiant’s HSE director Lee Lawson testified that leaving the well unplugged posed environmental and regulatory risks, citing its proximity to the San Antonio River. Lawson estimated the company could lose about $50 million if it could not complete the plugging work and warned of potential action by the Texas Railroad Commission.
Mark Dierlam, the ranch’s manager, said he refused further access after an August 2022 visit because no new payment was offered. He argued that the ranch’s land should not be used without compensation, a stance that echoed the ranch’s long‑standing stance on protecting its property rights.
The court’s opinion emphasized that the right to cross is limited to the plugging and related work; it does not grant Allegiant unrestricted use of the ranch. The decision was grounded in the regulatory obligations that govern abandoned wells, ensuring the operator fulfills its duty without infringing on private property.
The ruling leaves Allegiant poised to begin the plugging process, while the ranch’s cattle farmer, a third‑generation member of the McFaddin family, expressed relief that the land’s integrity would be preserved. The next step will be a compliance hearing with the Railroad Commission in early November.