Gloria’s Ranch: A Return to the Lender Liability Days?

On June 2, 2017, the Louisiana Court of Appeal for the Second Circuit rendered a decision in Gloria’s Ranch, LLC v. Tauren Exploration, Inc., which should cause serious concern for lenders to oil and gas lessees. It held a lender (Wells Fargo) liable with its borrower, a mineral lessee for significant damages (over $23 million) for failure to release a …