April 2022 DBA Headnotes

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Dallas Bar Association

HEADNOTES |

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Focus | Energy Law/Environmental Law

April 2022 Volume 47 Number 4

Bank of America Supports DVAP’s Eviction Prevention Work

Dallas Mavs CEO Cynt Marshall Speaks on Anniversary of Title IX STAFF REPORT

BY MICHELLE ALDEN

As part of its commitment to strengthening communities by addressing critical needs that help advance racial equality and economic opportunity, Bank of America invested more than $6.7 million in local nonprofits across DFW in 2021. With a particular focus on closing the equity and wealth gaps in communities of color and other disadvantaged populations disproportionately impacted by the prolonged pandemic, the Bank’s local giving was directed to alleviate challenges related to homelessness, food insecurity, access to healthcare, small business, jobs training, and education. In addition to philanthropic capital, which is nearly double the bank’s giving in 2020, the company also provided thousands of PPE supplies, and Bank of America employees across the metroplex contributed more than 95,000 volunteer hours in 2021. The Bank’s giving in Dallas included a generous contribution of $26,000 to this year’s Equal Access to Justice Campaign. The EAJ Campaign is the annual fundraising campaign that supports the activities of the Dallas Volunteer Attorney Program (DVAP). The Bank dedicated both financial resources and pro bono support specifically targeted to address the needs of the underserved during the rental crisis. The Bank’s contribution to the EAJ Campaign supports DVAP’s rental response and eviction prevention work, including its weekly eviction clinics in East Dallas. “Supporting efforts to alleviate homelessness and housing insecurity across DFW is a priority for Bank of America, and we understand that stable housing is a fundamental piece of advancing economic mobility,” said Jennifer Chandler, President, Bank of America Dallas. “We recognize the impact of the work DVAP is doing to reach vulnerable residents in our community and providing otherwise inaccessible services to those in urgent need of legal guidance and resources. This support for DVAP comes at a time when the bank is doubling down on our efforts to address housing challenges, making this partnership a natural fit.” The Bank of America Legal Department’s formal pro bono program was started more than 20 years ago. Sarah Kaseforth and Stacey Haggard are the Regional Co-Chairs for Texas of Bank of America’s Legal Department’s Global Pro Bono Program. Consistent with the Bank’s tradition of community support and the ethical obligations of the legal profession, the attorneys and legal professionals of the Legal Department are encouraged to volunteer with or otherwise support organizations that provide legal services to those in need. Pro bono service builds and strengthens the Bank’s, and most importantly its associates’, ties with the local community. By partnering with DVAP, Bank of America is able to provide vital legal services to under-served, vulnerable populations. The Dallas/Plano Legal Department has supported DVAP and Legal Aid of NorthWest Texas through active participation in legal clinics. The Bank has sponsored DVAP’s Veterans Clinic annually since 2016 and a Legal Aid clinic in Plano in 2018. In 2019 and 2020, the Legal Department sponsored DVAP Wills Clinics for the clients of The Senior Source. In addition, the Bank was recognized for its pro bono work with DVAP as the 2019 Outstanding Corporate Legal Department. The Bank

Jennifer Chandler

has continued its support of DVAP’s pro bono efforts through virtual clinics during the pandemic. “Working with DVAP’s clients gives me the opportunity to use my time and legal skills to help those with the greatest need, who are also the most underserved in a very challenging time when many are losing their homes. The training and support that DVAP provides for each clinic or pro bono case gives me the confidence to effectively address the needs of the clients. I look forward to continuing to work with DVAP in meeting the needs of our community,” said Lori Campbell, Associate General Counsel and CoChair of Bank of America’s Legal Department Global Pro Bono Program. The problem of access to justice in Dallas County is one that DVAP works to correct every day. In a country based on justice for all and access to our court system, over 25 percent of Dallas County residents live near the poverty level, and 42 percent have a slim hope of affording an attorney. With annual poverty incomes of $34,687 for a family of four, justice is a luxury for low and moderate income families. The commitment of Dallas attorneys and the DBA to the Equal Access to Justice Campaign is impressive. Since 1997, the DBA and Legal Aid have joined forces to raise money for the program, with Dallas lawyers donating over $18 million. DVAP is a joint pro bono program of the DBA and Legal Aid of NorthWest Texas. The program is the only one of its kind in Texas and brings together the volunteer resources of a major metropolitan bar association with the legal aid expertise of the largest and oldest civil legal aid program in North Texas. For more information, or to donate, visit www.dallasvolunteer attorneyprogram.org. HN Michelle Alden is the Director of the Dallas Volunteer Attorney Program. She can be reached at aldenm@lanwt.org.

Inside 8

Get Your Head Out of the Sand! Conduct an Environmental Audit

12 A Review of the Texas “Prompt Payment” Statute 16 Can You Dig It? Resolving Groundwater Contamination 23 You Want to Build Here? Oh Well…

Law Day is held annually on May 1st to celebrate the role of law in our society and to cultivate a deeper understanding of the legal profession. The Dallas Bar Association Law Day Luncheon is Friday, April 29, Noon, inperson at the Arts District Mansion. This year’s Law Day program will focus on the anniversary of Title IX of the Education Amendments of 1972, which marks its 50th anniversary in June of this year. Title IX is arguably one of the most significant pieces of civil rights legislation in America’s history. Patterned after Title VI of the Civil Rights Act of 1964, the portion of the landmark law that prohibits discrimination on the basis of race, color and national origin in federally funded programs, Title IX is a comprehensive law prohibiting discrimination on the basis of sex in all programs or activities in all federally funded educational institutions including high schools and middle schools. Since the enactment of Title IX, there has been a dramatic increase in interscholastic and intercollegiate athletic opportunities for girls and women. Few laws have influenced high school sports more than Title IX. A few important tenets about the law: • Title IX is the first comprehensive federal law that prohibits sex discrimination in education programs and activities that receive federal financial assistance. • Title IX does not only protect females; it protects all students, boys and girls, faculty, and staff. This year’s keynote speaker who will be addressing this important topic is Cynthia “Cynt” Marshall, CEO of the Dallas Mavericks. Mrs. Marshall has been a dynamic force for inclusion and diversity within the Mavericks organization, and over a 36-year career at AT&T, where she served as SVPHuman Resources & Chief Diversity Officer. When she was hired as the new CEO of the Mavs in March 2018, she set her sights on a culture transformation. Her vision was for the Mavericks organization to become the NBA standard for inclusion and diversity, and brought transparency, trust, and her values-based leadership style that evolved the company culture in her first 100 days. During her tenure at AT&T she led the team that created a world class Diversity and Inclusion culture, landing AT&T in the top 3 on Diversity Inc’s 2017 Top 50 list of companies.

Cynt Marshall

She also spearheaded the work, that for the first-time, placed AT&T on Fortune’s 100 Best Companies to Work For list in 2017, one of only two Fortune 50 companies. Widely recognized for her visionary leadership and ability to get things done Mrs. Marshall is the recipient of several honors and awards. In March 2021, Forbes named her one of 15 of the world’s most inspiring female leaders. She received the 2020 Girl Scouts of America Lifetime Achievement award and was touted as one of Adweek’s 30 Most Powerful Women in Sports. In 2019, she was honored with the Women of Power Legacy Award by Black Enterprise and was the recipient of the National ATHENA® Leadership Program Award. In March 2020 and several times prior, Mrs. Marshall was selected as one of the “50 Most Powerful Women in Corporate America” by Black Enterprise magazine and named to Ebony magazine’s 2016 “Power 100” list. Mrs. Marshall graduated from the University of California-Berkeley with degrees in Business Administration and Human Resources Management and holds four honorary Doctorate degrees. She has chaired a variety of non-profit boards and is currently on the board of Dallas CASA, Dallas Regional Chamber, Texas Women’s Foundation, Texas 2036, T.D. Jakes Foundation, and a member of the Executive Leadership Council (ELC). She is also on the Board of Directors of BGSF Staffing, JELD-WEN, and Blinkcns, Inc. The fourth of six children, Mrs. Marshall grew up in Richmond, California, and lives in the Dallas area. She and her husband, Kenneth Marshall, have four adult children. Please join us in person at the DBA Law Day Luncheon on Friday, April 29, at noon. Register at www.dallasbar. org. For more information, contact Liz Hayden at lhayden@dallasbar.org. HN

Advertise Here! Don’t miss your opportunity to advertise (print & online) in the #1 “Legal Resource & Expert Witness Guide” in Dallas County. For more information, contact (214) 321-3238 or dba@legaldirectories.com


2 He a d n o t e s l D a l l a s B a r A s s o ciation

A pri l 2022

Programs and meetings are presented Virtually, Hybrid, or In-Person. Check the DBA Online Calendar (www.dallasbar.org) for the most up-to-date information. Programs in green are Virtual Only programs.

Calendar April Events

WEDNESDAY, APRIL 13

FRIDAY CLINICS

APRIL 1 Noon

Visit www.dallasbar.org for updates on Friday Clinics and other CLEs.

9:00 a.m. Directory Photographer at Arts District Mansion

“Future of Trials in the Age of Covid,” Justice Amanda Reichek and Judge Regina Moore. (MCLE 1.00)* Virtual only

APRIL 22 Noon

Best Practices for Appellate Writing: Perspectives from the Bench and Bar,” Justice Brett Busby and Lucy Forbes. (MCLE 1.00)* Virtual only

FRIDAY, APRIL 1

9:00 a.m. Dallas Minority Attorney Program Topics include: Immigration, Law Office Management, Client Development, Technology, and Judicial Panel Presentations. RSVP at dallasbar.org. In Person only Noon

Friday Clinic “Future of Trials in the Age of COVID,” Justice Amanda Reichek and Judge Regina Moore. (MCLE 1.00)* Virtual only

THURSDAY, APRIL 7 Noon

Construction Law Section “Reframing America’s Infrastructure – A Playbook from Ruins to Renaissance,” Mark Gravely. (MCLE 1.00)* Virtual only

Tax Law Section “Surviving an IRS Partnership Audit,” Abbey Garber and Lee Meyercord. (MCLE 1.00)* In Person only

TUESDAY, APRIL 5 Noon

Judiciary Committee. Virtual only

FRIDAY, APRIL 8 No DBA Events Scheduled

Corporate Counsel Section “The New Sanctions Against Russia: Their Impact on Every Company,” Andrew Melsheimer and Lori Nugent. (MCLE 1.00, Ethics 0.25)*

MONDAY, APRIL 11 Noon

Alternative Dispute Resolution Section “Valuing Employment Cases: Plaintiff’s Perspective,” Brian Sanford and Elizabeth “BB” Sanford. (MCLE 1.00)* Virtual only

Tort & Insurance Practice Section “Insurers and the Blockchain: Embracing the Role of Insurance Coverage in the Cryptocurrency Space,” Alissa Christopher and Will Craven. (MCLE 1.00)* Virtual only

Real Property Law Section “What Lawyers Should Know About Contesting Property Taxes,” John Brusniak and Stephen Brusniak. (MCLE 1.00)*

5:30 p.m. Bar None Auditions At the Arts District Mansion. All who audition will be cast.

WEDNESDAY, APRIL 6 Noon

Employee Benefits & Executive Compensation Law Section “Executive Compensation - Securities Law Updates,” Dario Mendoza and Maddison Riddick. (MCLE 1.00)* Virtual only

Summer Law Intern Program Committee. Virtual only 4:00 p.m. LegalLine E-Clinic. Volunteers needed. Contact mmejia@dallasbar.org.

Noon

Wellness Program “Wellness: Taking Care of Business,” Erica Grigg. (Ethics 1.00)* Co-hosted by Solo & Small Firm Section, Business Litigation Section and Judiciary, Legal Ethics, Morris Harrell Professionalism Committees, and STEER Program.

Public Forum Committee. Virtual only

Home Project Committee. In Person only

4:00 p.m. LegalLine E-Clinic. Volunteers needed. Contact mmejia@dallasbar.org.

11:00 a.m. Directory Photographer at Arts District Mansion Noon

Labor & Employment Law Section “Raising Awareness: Managing Substance Abuse in the Legal Profession,” Dan Garrigan. (Ethics 1.00)*

TUESDAY, APRIL 19 Noon

Franchise & Distribution Law Section Topic Not Yet Available

Legal Ethics Committee. Virtual only

REGISTERnow Dallas Bar Association 30th Annual

Golf Tournament

TUESDAY, APRIL 26 Noon

Noon

THURSDAY, APRIL 28

11:00 a.m. DBA Golf Tournament Registration opens at 11:00 a.m. Shotgun start at1:30. Benefits Access to Justice. Texas Rangers Golf Club, Arlington. Register dallasbar.org. Noon

Criminal Law Section “The Law of Voir Dire,” Cliff Duke. (MCLE 1.00)* Environmental Law Section “Eminent Domain: An update on Legislative Changes and Key Cases before the Texas Supreme Court,” Jim Bradbury and Chandler Saul. (MCLE 1.00)* Virtual only

Health Law Section “Uniform Program Integrity Contractors & Their Use of Data Analytics,” Matt Lawhon. (MCLE 1.00)* Virtual only

Intellectual Property Law Section “Let’s Get Digital: Digital Marketing Trends and IP Implications,” Craig Carpenter and Heather Randall. (MCLE 1.00)*

Law in the Schools & Community Committee. Virtual only

4:00 p.m. LegalLine E-Clinic. Volunteers needed. Contact mmejia@dallasbar.org.

Collaborative Law Section Topic Not Yet Available

Entertainment, Art & Sports Law Section Topic Not Yet Available

Energy Law Section “Recent Developments in Energy Law,” Monika U. Ehrman. (MCLE 1.00)* Virtual only

Pro Bono Activities Committee. Virtual only

Probate, Trusts & Estates Law Section “Case Law Update,” Prof. Gerry W. Beyer. (MCLE 1.00)*

WEDNESDAY, APRIL 27

WEDNESDAY, APRIL 20 Noon

Science & Technology Law Section “What Lawyers Need to Know about Blockchain Including NFTs (Non-Fungible Tokens),” Peter Vogel. (MCLE 1.00, Ethics 0.50)* Virtual only Securities Section “Daubert Challenges - Trends in Financial Expert Exclusions,” Doug Branch, Chris Cline, and Megan Utz. (MCLE 1.00)* In Person only

MONDAY, APRIL 18

Community Involvement Committee. In Person only

Mergers & Acquisitions Section Topic Not Yet Available

Allied Bars Equality Committee. In Person only

DBA closed in observance of Good Friday

Peer Assistance Committee

Immigration Law Section “H-2B Fundamentals: The Tools and Information You Need to Handle H2B Cases,” Karen-Lee Pollack. (MCLE 1.00)* Virtual only

Noon

Publications Committee. Virtual only

Golf Tournament Committee. In Person only

Business Litigation Section “The Scourge of Bullying in the Law,” Mike Bassett, Dr. James Dolan, Amy Stewart, and Scott Stolley, moderator. (MCLE 1.00, Ethics 0.50)*

MONDAY, APRIL 25

CLE Committee

FRIDAY, APRIL 15

Friday Clinic “Best Practices for Appellate Writing: Perspectives from the Bench and Bar,” Justice Brett Busby and Lucy Forbes. (MCLE 1.00)* Virtual only Trial Skills Section “The Biggest Loser: What we Learned from Losing at Trial,” Elizabeth Fraley, Monica Latin, Dick Sayles, Judge Dale Tillery, moderator Julie Pettit. (MCLE 1.00)* In Person only

THURSDAY, APRIL 14

International Law Section Topic Not Yet Available

TUESDAY, APRIL 12 Noon

Bankruptcy & Commercial Law Section Topic Not Yet Available

Bench Bar Conference Committee. In Person only

Admissions & Membership Committee. Virtual only Criminal Justice Committee. Virtual only

Noon

Family Law Section “10 Ethics Myths You Need to Bust Right Now,” Jason Friedman and Jeanne Huey. (Ethics 1.00)* In Person only

6:00 p.m. Entertainment, Art & Sports Law Section “Law Goes to the Opera 2022,” Ian Derrer and Thomas Maddrey. (MCLE 1.00)* In Person at the Dallas Opera.

MONDAY, APRIL 4 Noon

Noon

FRIDAY, APRIL 22

Minority Participation Committee. Virtual only

FRIDAY, APRIL 29 Noon

THURSDAY, APRIL 21 3:30 p.m. DBA Board of Directors

Law Day Luncheon “Title IX.” Keynote speaker Cynthia “Cynt” Marshall, CEO of the Dallas Mavericks. (MCLE 1.00)* Tickets $75; Tables $750. Register dallasbar.org.

Thank You Mock Trial Judges

Benefiting Access to Justice

When: Thursday, April 28, 2022 Shotgun start at 1:30 PM Where: Texas Rangers Golf Club 701 Brown Blvd, Arlington, TX

Cost: $255 per player

Sponsorships available!

Register your team or sign up to sponsor at DallasBar.org

Booker T. Washington High School won the 2022 State High School Mock Trial Championship! Back to in-person this year, Dallas Bar Association members presided over, and served, as “jurors” for the final competition on March 5. Back Row (L to R): Corey Lipschutz, Andy Jones, Allison Reppond, Don Wiley, and Robert Tobey. Front Row (L to R): Tom Goranson, Dennis Saumier, Jaime Olin, Nadia Haghighatian, and Justice Lana Myers. Congratulations to all the participants of the Mock Trial program. And a big Thank You to all the members who volunteered their time.

If special arrangements are required for a person with disabilities to attend a particular seminar, please contact Alicia Hernandez at (214) 220-7401 as soon as possible and no later than two business days before the seminar. All Continuing Legal Education Programs Co-Sponsored by the DALLAS BAR FOUNDATION. *For confirmation of State Bar of Texas MCLE approval, please call the DBA office at (214) 220-7447. **For information on the location of this month’s North Dallas Friday Clinic, contact yhinojos@dallasbar.org.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 3


4 He a d n o t e s l D a l l a s B a r A s s o ciation

A pri l 2022

President’s Column

Headnotes Published by: DALLAS BAR ASSOCIATION

Thriving BY KRISI KASTL

“My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and style.” –Maya Angelou Renowned poet, activist, and essayist Maya Angelou planted gardens with her words. The wisdom of this quote fills my heart when I think about the thriving work of the DBA. I have witnessed passion, style, and grace at every turn and am warmed by the humor that makes each day shine. Springtime is the perfect transition as we plant the seeds of hope and diversity in the thriving garden of the Dallas Bar Association. I would like to highlight the efforts of another trailblazer who planted the seeds of inclusion and exemplified the attributes of Angelou’s quote. Mary Margaret “Molly” Steele paved the way for women like me in 1997 when she became the second woman president of the Dallas Bar Association, following in the footsteps of the first female President Harriet Miers, who served in 1985. Molly left her hometown of Dallas to pursue her Bachelor of Arts degree at Stanford. She graduated with distinction in 1970 and returned to Texas to earn her Juris Mary Margaret “Molly” Steele doctorate at the University of Texas School of Law, where she was associate editor of the Texas Law Review. After clerking for the Honorable Walter P. Gewin, U.S. Court of Appeals for the Fifth Circuit in Tuscaloosa, Alabama, Molly returned to Texas and started her career as a lawyer for Thompson & Knight where she represented clients in business litigation, focusing on international matters. While building her career, Molly found time to join the DBA and became increasingly involved. She chaired the DBA’s Legal Aid and Legal Services Committee and was elected to the board, and held various leadership positions before her Presidency. As President of the DBA, Molly cultivated the seeds of our extremely successful Access to Justice fundraising campaign, by raising money for legal services to the poor. She also cultivated the DBA’s focus on diversity, equity, and inclusion by actively seeking DBA committee leaders who reflected the widely diverse membership of the DBA. In 2008, after almost 33 years with Thompson & Knight, Molly moved to Covington, Louisiana with her husband where she continued to practice law. She has since returned to Dallas and continues to stay connected to the Dallas Bar Association. In 2020, she helped the DBA with its strategic planning initiative and is readily available to guide, sup-

port, and provide encouraging words to our members and leaders. I am thankful to Molly for paving the way for women, like me, to follow in her footsteps. She set an excellent example of service to others, as well as the importance of diversity, equity, and inclusion to our bar.

Representation matters

The affinity bars are our association’s vibrant partners. Although their mission statements are uniquely crafted for each association, they share common goals of advocacy, community involvement, and a commitment to increasing the visibility of those who may have been traditionally marginalized. The DBA seeks to increase the visibility of each of our affinity bars. The core mission and unique perspective of each are deeply valued as we move towards greater understanding. Our affinity bars include the Dallas Asian American Bar Association, Dallas Association of Young Lawyers, Dallas Hispanic Bar Association, J.L. Turner Legal Association, Dallas LGBT Bar Association, and Dallas Women Lawyers Association.

Next Steps

Together, the DBA and affinity bars have created the Allied Bars Equality Committee focusing on diversity, equality, and inclusion to ensure that our bar is a bar for all. This year, the Committee is taking bold action by offering a unique challenge. The 2022 DBA DEI challenge encourages DBA members to complete three hours of CLE training in the areas of diversity, inclusion, and equity each calendar year. Members who complete three hours of training can self-report and the DBA will recognize their efforts. Learn more at www.dallasbar.org/?pg=deichallenge.

Highlighting the DBA Staff

A garden can only bloom with careful cultivation. The DBA has a wonderful and hard-working support team. In this column I would like to recognize two team members, Liz Hayden, DBA Executive Assistant, and Jessica Smith, DBA Communications/Media Director. Their experience and support helps the DBA continue to be a leader in our community. Jessica Smith has been an integral part of the DBA for 13 years. As the Communication/Media Director, Jessica is the Editor of Headnotes, a nationally and regionally recognized bar publication. She is responsible for the DBA’s website, social media, and all other communication, among other things. Jessica enjoys the challenges of the constant evolution each day brings. She was particularly impressed by how everyone came together during the first tempestuous year of the pandemic to create the DBA’s COVID-19 Task Force, continue bringing members together with engaging programs, and serve the community. Liz Hayden has served as Executive Assistant to DBA’s Executive Director, Alicia Hernandez, since 2016. Following a long career in the field of higher education, Liz was ready for a new challenge and enthusiastically accepted the opportunity to work at the DBA. She works on board and governance issues, section and committee organization and scheduling, and oversight of many Arts District Mansion scheduling and maintenance issues. She enjoys the unique challenges each day brings and is grateful to be able to work alongside such a talented and dedicated group of colleagues.

Back in the Groove

April is bookended with exciting ways to get back in the groove in 2022. We are kicking off the month with the Dallas Minority Attorney Program (DMAP) on April 1. We are proud to hold the Annual Golf Tournament on April 28, benefiting Access to Justice. The anniversary of Title IX is a cause for the celebration to continue. We are thrilled to welcome the legendary Cynt Marshall at the Law Day Luncheon on April 29. Celebrating the 50th Anniversary of Title IX, Ms. Marshall and I will engage in a conversation about the federal civil rights law that prohibits sex-based discrimination in education programs and activities. Mrs. Marshall is CEO of the Dallas Mavericks; President & CEO of Marshalling Resources Consulting; and a retired AT&T SVP-Human Resources & Chief Diversity Officer. I am so grateful to work with a community that champions the many voices of our diverse membership. Our engagement and advocacy around these issues matter. I look forward to aligning with the many caring people whose dedication and sage grace allow the Dallas Bar Association to thrive. HN

2101 Ross Avenue Dallas, Texas 75201 Phone: (214) 220-7400 Fax: (214) 220-7465 Website: www.dallasbar.org Established 1873 The DBA’s purpose is to serve and support the legal profession in Dallas and to promote good relations among lawyers, the judiciary, and the community. OFFICERS President: Krisi Kastl President-Elect: Cheryl Camin Murray First Vice President: Bill Mateja Second Vice President: Vicki D. Blanton Secretary-Treasurer: Liz Cedillo-Pereira Immediate Past President: Aaron Z. Tobin Directors: Lauren Black, Rob Cañas, Jonathan Childers (Chair), Stephanie G. Culpepper, Rocio Garcia Espinoza, Hon. Dennise Garcia, Ashlei Gradney (President, J.L. Turner Legal Association), Hon. Martin Hoffman, Andrew Jee, Andy Jones (President, Dallas Association of Young Lawyers), Jennifer King, Jonathan Koh (President, Dallas Asian American Bar Association), Elsa Manzanares (President, Dallas Hispanic Bar Association), Hon. Audrey Moorehead, Timothy Newman, Marisa O’Sullivan (President, Dallas Women Lawyers Association), Kelly Rentzel, Sarah Rogers (Vice Chair), Drew Spaniol, and Amy M. Stewart Advisory Directors: Alison Ashmore (President-Elect, Dallas Women Lawyers Association), Carla Green (President-Elect, Dallas Hispanic Bar Association), Amber Hamilton Gregg (President-Elect, J.L. Turner Legal Association), Nadia Haghighatian (President, Dallas LGBT Bar Association), Nicole Munoz Huschka (President-Elect, Dallas Association of Young Lawyers), and Janet Smith (President-Elect, Dallas Asian American Bar Association) Delegates, American Bar Association: Rhonda Hunter, Mark Sales Directors, State Bar of Texas: Chad Baruch, Rebekah Brooker, Michael K. Hurst, Mary Scott, Robert Tobey HEADNOTES Executive Director/Executive Editor: Alicia Hernandez Communications/Media Director & Headnotes Editor: Jessica D. Smith In the News: Judi Smalling Display Advertising: Annette Planey, Jessica Smith PUBLICATIONS COMMITTEE Co-Chairs: James Deets and Joshua Smeltzer Vice-Chairs: Elisaveta (Leiza) Dolghih and Ted Huffman Members: Logan Adcock, Benjamin Agree, David Brickman, Catherine Bright Haws, Ian Brown, Srinivasan Chakravarthi, Gracen Daniel, Lindsay Drennan, Alexander Farr, Dawn Fowler, Neil Issar, Beth Johnson, Andrew Jones, Alexandra Jones, Krisi Kastl, Jon Kettles, Brian King, Jared Knight, John Koetter, Alan Lightfoot, Margaret Lyle, Derek McKee, Majed Nachawati, D. Mason Parham, Keith Pillers, David Ritter, Carl Roberts, Sarah Rogers, John Shipp, Jared Slade, Sarah Spires, Jay Spring, Sarah-Michelle Stearns, Scott Stolley, Robert Tarleton, Paul Tipton, Anastasia Triantafillis, Pryce Tucker, Kathleen Turton, Peter Vogel, Benton Williams, Jason Winford DBA & DBF STAFF Executive Director: Alicia Hernandez Accounting Assistant: Jessie Smith Legal Education Coordinator: Viridiana Rodriguez Communications/Media Director: Jessica D. Smith Controller: Sherri Evans Events Director: Rhonda Thornton Executive Assistant: Elizabeth Hayden Executive Director, DBF: Elizabeth Philipp LRS Director: Biridiana Avina LRS Interviewer: Giovanna Alvarado LRS Program Assistant: Marcela Mejia Marketing Coordinator: Mary Ellen Johnson Membership Director: Shawna Bush Publications Coordinator: Judi Smalling Receptionist: Araceli Rodriguez Staff Assistant: Yedenia Hinojos Texas High School Mock Trial & Law Related Education Director: Melissa Garcia DALLAS VOLUNTEER ATTORNEY PROGRAM Director: Michelle Alden Managing Attorney: Holly Griffin Mentor Attorneys: Kristen Salas, Katherine Saldana Paralegals: Whitney Breheny, Miriam Caporal, Tina Douglas, Carolyn Johnson, Suzanne Matthews, Andrew Musquiz, Alicia Perkins Community Engagement Coordinator: Marísela Martin Program Assistant: Laci Payton Secretary: Charnese Garrett Copyright Dallas Bar Association 2022. All rights reserved. No reproduction of any portion of this publication is allowed without written permission from publisher. Headnotes serves the membership of the DBA and, as such, editorial submissions from members are welcome. The Executive Editor, Editor, and Publications Committee reserve the right to select editorial content to be published. Please submit article text via e-mail to jsmith@dallasbar.org (Communications Director) at least 45 days in advance of publication. Feature articles should be no longer than 800 words. DISCLAIMER: All legal content appearing in Headnotes is for informational and educational purposes and is not intended as legal advice. Opinions expressed in articles are not necessarily those of the Dallas Bar Association. All advertising shall be placed in Dallas Bar Association Headnotes at the Dallas Bar Association’s sole discretion. Headnotes (ISSN 1057-0144) is published monthly by the Dallas Bar Association, 2101 Ross Ave., Dallas, TX 75201. Non-member subscription rate is $30 per year. Single copy price is $4.00, including handling. Periodicals postage paid at Dallas, Texas 75260. POSTMASTER: Send address changes to Headnotes, 2101 Ross Ave., Dallas, TX 75201.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 5


6 H e a d n o t e s l D a l l a s B a r A s s o ciation

UNT Dallas College of Law Receives Full ABA Approval As of February 2022, the University of North Texas at Dallas College of Law (UNTD COL) has been fully approved by the American Bar Association (ABA). The College of Law received notification that the Council of the ABA’s Section of Legal Education and Admissions to the Bar had approved the school after a final presentation before the Council by school officials last Friday in San Diego. The UNTD COL admitted its first class in 2014 and had been operating under provisional accreditation since 2017. “This will allow us to continue our mission of providing a high quality, affordable legal education to our students,” said UNT Dallas College of Law Dean Felecia Epps. “I am grateful to Dean Emeritus Royal

Furgeson and the founding faculty for their work laying the foundation for the College of Law program and earning provisional approval.” During the five-year approval process, which included four site visits, the ABA reviewed a variety of factors, including admission standards, bar exam passage rates, and employment after graduation. “Full approval from the ABA furthers the important work of our College of Law and opens up even more opportunities for students and prospective students,” said UNT Dallas President Bob Mong. “For those in the community who fought for this law school and its mission, I thank them for their support and faith in us to provide high quality, accessible legal education at an affordable cost.” HN

DBA/DAYL Moms in Law Being a working mom can be challenging. Being a working lawyer mom can be a different ballgame with its own unique challenges. Moms in Law is a no-pressure, no-commitment, informal, fun, support group for lawyer moms. If you would like to join the listserv, email Christine Leatherberry at cpleatherberry@gmail.com. Upcoming events: • Lunch, Friday April 22, noon at Ziziki’s in North Dallas at Preston and Forest (11661 Preston Rd, #309). RSVP to Rebecca at rfitzgib@gmail.com • Cinco de Mayo Happy Hour, Thursday, May 5, 5:00-6:30 p.m. at Mesero at Preston Hollow Village (7775 Firefall Way, Ste 100). RSVP to Kelly at kelly.bryan01@gmail.com

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A pri l 2022

Column

Ethics

Law Firm Trade Names: What is ‘False or Misleading’? BY FRED C. MOSS

The Texas Disciplinary Rules of Professional Conduct (TDRPC) were amended by referendum effective July 1, 2021, and now allow lawyers to adopt firm trade names. TDRPC 7.01(c). However, the trade names cannot be “false or misleading.” This standard applies to all Texas lawyer advertising. A trade name is false or misleading if it contains a material misrepresentation of fact or law; omits a fact necessary to make the statement as a whole not materially misleading; creates a substantial likelihood that it will lead a reasonable person to formulate a specific conclusion about the lawyer or the lawyer’s service for which there is no reasonable factual foundation; or is substantially likely to create unjustified expectations about the results the lawyer can achieve. TDRPC 7.01(a). Since Texas lawyers previously have been barred from using trade names, there is precious little guidance in Texas as to what constitutes a false or misleading trade name. Texas lawyers must look elsewhere. The ABA Model Rules allow the use of trade names that are not false or misleading and provide some guidance that is absent from the Texas rule. A Comment to Model Rule 7.1 advises: “A law firm name . . . is misleading if it implies a connection with a government agency . . . or with a public or charitable legal services organization.” As an example, the Comment advises that a geographical name such as “Springfield Legal Clinic” may require an express statement explaining that the firm is not a public legal aid organization to avoid a misleading implication. Ethics committees in other states that allow law firm trade names have published ethics opinions advising whether specific names were false or misleading. Here is a small sampling: The trade name “Accident Legal Clinic of Shapiro and Shapiro” was held improper because it misleadingly implied that the firm had a separate clinic for accident cases—which was not true—and that the firm limited its practice to accident claims, which also was not true. “Medical Malpractice Trial Attorneys, Inc.” was deemed a misleading trade name unless the firm handles medical malpractice

cases all the way through trial. A sole practitioner’s firm name, “Immigration Verification Associates”, was found to be misleading because the lawyer had no associates. In another case, however, a sole practitioner was allowed to call her practice a “firm” because the term does not imply that there are other lawyers in the firm. “Group” is often permitted if the lawyer practices with at least one associate. “Workers Compensation Relief Center” was held to misleadingly imply an affiliation with a governmental agency. However, a clearly visible disclaimer could make the trade name not misleading. Thus, “Dallas County Legal Services” may be non-misleading if accompanied by a disclaimer of any connection with a government agency, or public or charitable legal services organization. A trade name can run afoul of Rule 7.01(f), which prohibits stating or implying that the lawyer practices with other lawyers in a partnership or other business entity when that is not the case. A common firm name implies one firm with all principals sharing responsibilities and liabilities. Thus, several lawyers who simply share a suite of offices may not hold themselves out as a firm, such as “The Preston Center Law Group” or “The Lone Star Law Center.” Texas lawyers thinking about adopting a trade name must beware of names that imply special expertise or create unwarranted expectations. “Texas’ Best” is problematic. “Tiger Law Group” may be okay. Names that merely identify the types of matters the firm handles, such as “DivorcesR-Us” and “The Wills Store,” should be fine. “Federal Tax Law Center” probably needs a disclaimer. Texas lawyers can contact the State Bar Ethics Hotline (800-522-3947) or request an ethics opinion (PECopinionrequest@ texasbar.com) regarding the propriety of a trade name. Trade names do not have to be pre-approved by the Advertising Review Committee, but if a trade name used in advertising is submitted to the Committee, the Committee will determine its propriety. The Committee can be contacted at 800566-4616 or at adreview@texasbar.org. HN Fred Moss taught legal ethics at SMU’s Dedman School of Law for 31 years before retiring. He can be reached at fmoss@smu.edu.

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Our 2022 DBA 100 Club members will be recognized in Headnotes, the 2023 DBA Pictorial Directory, and at our Annual Meeting.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 7

Congratulations! ABA Full Approval


8 He a d n o t e s l D a l l a s B a r A s s o ciation

Focus

A pri l 2022

Energy Law/Environmental Law

Get Your Head Out of the Sand! Conduct an Environmental Audit BY ALLISON EXALL

Many CEOs, COOs, and environmental managers lay awake at night worrying whether their company is in compliance with the multitude of complex and technical regulations protecting human health and the environment. The Texas Environmental, Health, and Safety Audit Privilege Act (TAPA) exists for the benefit of these individuals. TAPA provides a process for companies to conduct voluntary environmental and health and safety audits and correct violations without incurring stateimposed penalties. It incentivizes companies to audit and correct potential violations in exchange for establishing a limited evidentiary privilege for information generated during the audit and immunity from state-imposed civil penalties for violations that are disclosed and corrected within a reasonable amount of time. Since the Texas Legislature passed TAPA in 1995, tens of thousands of companies have used the Act to improve compliance with Texas

laws governing waste, water, air and safety. Planning is key to a successful audit under TAPA. Environmental and health and safety audits are typically conducted by third-party consulting companies with expertise and objectivity. The law requires that a Notice of Audit (NOA) be submitted prior to the commencement of the audit in order for the company to be granted immunity from potential violations. The Texas Commission on Environmental Quality (TCEQ) provides a form letter for the NOA, which requires information about the company and the scope of the audit to be conducted. A company has six months to complete the audit, or to request an extension for another six months. After the audit is concluded, TAPA requires that the company file a Disclosure of Violation (DOV) promptly, which TCEQ interprets as meaning no later than six months following completion of the audit. However, immunity from penalties becomes available after TCEQ staff reviews and approves the DOV, so the sooner a

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company submits a DOV, the sooner it potentially obtains immunity. In the DOV, the company discloses information about the discovered violations, including the state laws involved, the duration of the violations, and the status and schedule for corrective actions. The company must be prepared to correct deficiencies within a reasonable time and will be required to report quarterly to TCEQ regarding its status in achieving compliance. The DOV becomes part of a company’s compliance history and provides a benefit for penalty calculations for future violations. Drafting a DOV is somewhat of an art. With scant guidance from TCEQ, questions often arise about how specific the description of a violation should be. According to TCEQ, the description needs to be specific enough to identify the particular issue for which the company later claims immunity. On the other hand, the DOV itself is not privileged and is a public document discoverable by third parties. Typical examples of violations that companies have disclosed and for which immunity has been granted include: failure to obtain permits; failure to comply with permit conditions; equipment failure; and recordkeeping and reporting violations. In order to receive immunity, however, the disclosure needs to describe the exact nature of the violation. Vague and broad descriptions of the violation will not protect the company for a violation discovered by TCEQ in a later inspection. TAPA does not provide immunity from liability under federal laws, the EPA, OSHA, or criminal penalties. Thus, in order to benefit from the immunity provided by the Act, the violation must be tied to a state law or regulation or a permit for which Texas has received authori-

zation. Therefore, items reported in Title V deviation reports or other compliance requirements of federal permits, although potentially eligible for immunity from TCEQ penalties, will not provide privilege or immunity from an EPA enforcement action. Violations of the Emergency Planning and Community Right-to-Know Act (EPCRA) are also not eligible for immunity because Texas does not have delegated authority to enforce EPCRA. (EPA has its own voluntary disclosure policy with different requirements and benefits.) EPA has, however, agreed not to request an environmental audit report during a routine inspection. Finally, TAPA audits cannot be used to protect violations that are already subject to TCEQ enforcement or that have already been reported to TCEQ (such as in a deviation report). While companies were initially hesitant to conduct audits under TAPA because of the notice and disclosure requirements, over the years, companies have experienced big benefits from voluntarily finding and correcting environmental violations and receiving immunity from penalties. Routine auditing is now the norm at large companies and part of many companies’ commitment to environmental, social, and governance goals. Conducting environmental audits under TAPA is a “win-win” program that incentivizes companies to choose knowing over keeping their heads in the sand and enhances state-wide environmental compliance by the regulated community. HN Allison Exall is a Member at Exall Legal Advisors, PLLC, and past Chair of the DBA Environmental Law Section and State Bar of Texas Environment Natural Resources Law Section. She can be reached at aexall@exall.legal.

WE KEEP GROWING The Rogge Dunn Group is excited to announce Tate Hemingson, has joined our team Tate is a trial lawyer who spent the first 10 years of his career at Clark Hill where he secured significant victories at the negotiation table and the courthouse in a range of commercial disputes on both sides of the docket. We look forward to Tate continuing his success for our clients.

TATE HEMINGSON


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 9

T H E H A P P Y PA R T O F

FAMILY LAW Many of you know Carla M. Calabrese of Calabrese Budner for the past 30 plus years as a premier Dallas family law attorney, a pioneer of her firm’s specialized services – Emotionally Intelligent Divorce® and a Master Credentialed Collaborative Divorce lawyer (one of only a handful in the area). What you might not know is that Carla also spent the last 30 years handling all things family formation from adoption to surrogacy and egg and embryo donation. Carla’s family formation practice was born from the thought, “If I am going to be involved in pulling families apart in divorce, I’d like to be a part of putting them together”. And put them together she has! Carla, as a member of the international and well-respected legal association, the Adoption and Assisted Reproductive Attorney Academy, has helped hundreds of families adopt babies and children over the years. She has touched every aspect of adoption, including domestic and international adoption, private adoption, interstate adoption, agency adoption, birth parent representation, agency representation, contested termination of parental rights and fixing cases with complicated interstate compact laws. Carla founded two adoption agencies: A Cradle of Hope, a private domestic agency, and the wellknown local non-profit, Hope International Adoption and Humanitarian Agency. Hope’s mission - to help as many orphaned children find forever homes here in the US while giving humanitarian aid to those children left behind - has touched the hearts of many Dallasites and others who willingly and graciously support this worthwhile cause. Having adopted a child herself and experiencing first-hand the emotions of wanting a child and knowing as a professional how overwhelming the entire process can be, Carla offers prospective adoptive parents her “Adoption A-Z” consults. She says, “Once you spend an hour or so with me, you’ll know everything you need to know about family formation, including adoption and ARTS, and will be able to decide which route is best for you and your family”. Carla and her Calabrese Budner Team love being involved in family formation spouting, “It’s the happy part of family law”. Carla Calabrese founded two adoption agencies - a private agency named A Cradle of Hope (www.cradleofhope.com) and the wellknown local non-profit, Hope International Adoption

and Humanitarian Agency (www.hopeadoption.org ). She is named among D Magazine’s Best Lawyers

in Dallas, Super Lawyers by Texas Monthly, and as

Best Lawyers in America (Family Law). Carla is also named among the Best in America for Collaborative Law and Calabrese Budner LLP was named among the Best Law Firms in America.

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10 H e a d n o t e s l D a l l a s B a r A s s ociation

Focus

A pri l 2022

Energy Law/Environmental Law

The Increasing Importance of Evaluating Indoor Air Quality BY BRUCE M. FLOWERS

Throughout my practice as an environmental lawyer, I have seen various environmental issues rise in importance and visibility to the business community. One topic that has received increasing attention over the past several years is indoor air quality (IAQ). The increased attention focuses on several aspects of IAQ, including what conditions may present a risk to human health and the environment; how IAQ should be measured; and, what are the appropriate responses and protections to reduce the risks from unwanted or unsafe IAQ conditions. While IAQ has been an important topic for schools and workplaces for some time, the focus on IAQ took a leap forward with the adoption of ASTM 1527-13, which for the first time required vapor intrusion concerns to be addressed in Phase I Environmental Site Assessments (ESAs). Most businesses and lenders require a Phase I ESA before ownership of commercial real estate is transferred. The Phase I ESA is non-invasive and primarily provides for a review of the historical uses of the site and surrounding properties, and a site reconnaissance to determine

whether there are identified Recognized Environmental Conditions that would warrant further investigation. At many commercial sites or properties adjacent to commercial sites, there is the need to test soil gas vapor to determine if there is a potential risk to employees or customers from poor IAQ. Common sources of potential IAQ concerns include historic or operating gasoline service stations or dry cleaners. ASTM E2600-15 provides practical guidance and an effective process for conducting vapor encroachment screening on properties involved in real estate transactions. An environmental consultant should also evaluate the building conditions such as air pressure, ventilation, air entry points and any indoor sources that could adversely impact IAQ. Remedies for poor IAQ can take several forms, from as simple as increased ventilation or the use of different HVAC filters, to as complex as installation of a vapor mitigation system including a sub-slab vapor barrier with perforated piping to collect the vapor and mechanically expel it, usually at or above the building’s roof. The Occupational Safety and Health Administration (OSHA) acknowledges

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the quality of air inside workplaces is important not just for workers’ comfort and general health, but that poor IAQ has been tied to symptoms including headaches, fatigue, trouble concentrating, and irritation of the eyes, nose, throat and lungs, and certain diseases. Some exposures, such as asbestos and radon, may not cause immediate symptoms but can lead to serious health concerns years later. OSHA identifies several factors that commonly impact IAQ including poor ventilation (lack of outside air), poor control of temperature and humidity, recent remodeling, and other current or historic activities in or near a building that affect the air in the building. Sometimes, specific contaminants like dust from construction or renovation, mold, cleaning supplies, pesticides, or other airborne chemicals, such as volatile organic compounds (organic chemicals that have a high vapor pressure at room temperature), cause poor IAQ. The right ventilation and building maintenance can often prevent or remedy IAQ problems. Although OSHA does not have specific IAQ standards, it does have standards about ventilation and standards on various air contaminants that can cause IAQ problems. Most IAQ concerns are addressed on a case-by-case basis, using a risk-based analysis considering several factors. Pursuant to the General Duty Clause of the OSH Act, employers are required to provide workers with a safe workplace without any known hazards that cause or are likely to cause death or serious injury. OSHA states on its website that the agency responds to questions about standards with letters of interpretation. OSHA’s two letters of interpretation addressing IAQ issues on its website are dated and of limited use in actually dealing

with many of today’s IAQ concerns. The first letter, dated August 1, 2002, responds to questions concerning whether certain IAQ documents and reports are “employee exposure records” which must be preserved relevant to OSHA’s access and review standard. The letter concludes that documents showing carbon dioxide level, total particulate exposures, exposure to toxic substance or harmful physical agents, and the sampling results of IAQ are exposure records, while temperature and humidity records, consultant’s synopses and employee statements and responses do not constitute employee exposure records, which may be protected from production in certain circumstances under the work product doctrine. The second letter, dated February 24, 2003, only deals with office temperature and humidity, and environmental tobacco smoke, and concludes that the General Duty Clause does apply to either condition. Employers should be aware of the potential causes of poor IAQ and maintain the resources necessary to identify and control potential workplace hazards both for the safety of those in the buildings, and to avoid potential liabilities that can result from poor IAQ. If you notice unusual odors, staining, mold growth, or health effects that you think may be associated with a work environment or present in a property you are considering purchasing, you should work with a qualified environmental consultant to identify any conditions that could potentially damage human health and property’s valuation and use. An environmental attorney can also help explain legal options and negotiate potential remedies. HN Bruce M. Flowers is a Shareholder at Kane Russell Coleman Logan. He can be reached at bflowers@krcl.com.

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April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 11

OUR CLIENTS OFTEN GET CALLED NAMES IN COURT, LIKE COMPENSATED, VINDICATED + AWARDED. But that comes with the territory when you retain one of the region’s most effective and accomplished personal injury firms. For over 25 years, we’ve worked relentlessly to help personal injury victims secure the justice they deserve, while actively spurring changes to make our world safer. If you know someone who is a victim of a catastrophic personal injury matter, visit paynemitchell.com to make a referral or to find out more about our notable results.

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12 He a d n o t e s l D a l l a s B a r A s s ociation

Focus

A pri l 2022

Energy Law/Environmental Law

A Review of the Texas “Prompt Payment” Statute BY SARAH SMITH TAVILSON

With prices increasing, royalty payment fluctuations are bound to draw piqued interest in the coming months. To ensure compliance with all payment rights and obligations, a careful study of the Texas “Prompt Payment” Statute, Texas Natural Resources Code Sections 91.401, et seq., is necessary. The parties covered by the Prompt Payment Statute are the “payor” and “payee” of all proceeds from production, as they are defined in 91.401. The “payee” is the mineral or royalty interest owner. The “payor” is the entity or individual charged with rendering payments due on production to the payee. The payor can be the purchaser of production, the operator of the producing well, or the lessee under the subject oil and gas lease. The prompt payment rules, which appear in 91.402(a), require the proceeds derived from oil or gas production from a Texas oil or gas well to be paid on or before 120 days after the end of the month of first sale of production from the well. After the first payment, all subsequent

payments must be made on a timely basis as required in the lease or other written agreement between the payor and payee. In the event there is no such agreement between the parties, or the lease does not specify when payments should be made, timeliness for all subsequent payments will be governed by the statute. In that case, all payments for oil production are due 60 days after the end of the calendar month in which the production is sold and all payments for gas production are due 90 days after the end of the calendar month in which the production is sold. Pursuant to Section 91.403, late payments will result in interest accrued at a rate of two percentage points above the rate charged on loans to depository institutions by the New York Federal Reserve Bank, unless a different rate of interest is specified in a written agreement. If a payor obligated to pay interest to a payee fails to notify the payee of a change in payor pursuant to Section 91.407, that payor will be obligated to pay an additional two percent in interest above the rate specified in Section 91.403. Pursuant to Section 91.402(b), pay-

FREE MCLE FREE MCLE OneOne of of the Member Benefits themany many Member Benefits that offers thatthe the DBA DBA offers is more than 400 courses each is more than 400CLE CLE courses each year,year, most of whichare are offered offered atat nono charge. most of which charge.

ments may be withheld beyond the required deadlines if there is 1) a dispute concerning title, 2) a reasonable doubt the payee has sold or authorized the sale of its share of the oil or gas to the purchaser of the production, 3) a reasonable doubt that the payee has clear title to the interest, or 4) a requirement in a title opinion that places in issue the title, identity, or whereabouts of the payee and that has not been satisfied by the payee after a reasonable request for curative. In addition, payments may be withheld if the payee is subject to a child support lien or writ of withholding under the Texas Family Code. Section 91.402(b-1) was added in 2021 to eliminate the common law cause of action for breach of contract for withholding payments for a title dispute, unless the lease requiring payment specifies otherwise. This amendment was enacted in response to ConocoPhillips v. Koopmann, 547 S.W.3d 858, (Tex. 2018), where the Supreme Court of Texas held a payee could bring a cause of action for breach of contract against the payor for withheld payments despite the safe harbor provisions of Section 91.402(b). However, Section 91.402(b-1) does not address whether a payee could still raise any other common law claims against the payor for withheld payments outside of breach of contract. As a condition for payment, a payor may require a division order executed by the payee with the necessary terms out-

lined in Section 91.402(c). In addition, a form oil division order appears in Section 91.402(d). Note there is no statutory gas division order, but the statutory form oil division order provides the basic terms which could be adapted for gas production payments. Under Section 91.404, if payments on production held in suspense are disputed, prior to initiating litigation, the payee must mail written notice demanding payment from the payor. The payor must respond by mail within 30 days after receipt of the payee’s notice with payment of the suspended funds or an explanation in support of the suspension. If the dispute is not settled by the payor’s response, or the payor fails to respond, the payee may then file suit. Finally, the prevailing plaintiff in a suit filed under the Prompt Payment Statute is entitled to reasonable attorney’s fees and a minimum award of $200 under Section 91.406. Thus, failure to comply with the Prompt Payment Statute could result in compounded obligations including outstanding payments, interest, and attorney’s fees. The Prompt Payment Statute is a powerful tool for payors and payees. Both should be mindful of their rights and obligations to ensure production proceeds are properly and timely paid. HN Sarah Smith Tavilson is a Partner at Hoge & Gameros, LLP. She can be reached at stavilson@legaltexas.com.

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Legacy Award Recipient Honorable L. Clifford Davis Retired Texas Senior District Judge

From the Bench STACEY JERNIGAN

United States Bankruptcy Court for the Northern District of Texas, Dallas Division Why did you decide to become a Judge? I like having a role as a problem-solver and getting to a right resolution more than advocating for a position that may or may not be the right resolution. Also, I like reading cases and writing opinions. Why do you participate in Bar programs? To help me be smarter and more effective; to help others to be smarter and more effective; and for the camaraderie. Our Bar is a special group, and we are all better when we support each other.

DALLAS • FORT WORTH • HOUSTON • ATLANTA

WWW. TH OMAS R ON EY L L C . C O M

What are you currently reading? I am proofreading my own fiction novel, a legal thriller, that is being released on 3/22/22 called “Hedging Death” (available on Amazon or wherever books are sold). Besides that: “Where I Was From” by Joan Didion. Fun fact about you: I am obsessed with travel, creative writing (two novels so far), and Cavalier King Charles Spaniels. My current two Cavaliers are named Jake and Finley.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 13

KOONSFULLER DALLAS TEAM Left to Right: Lindsey Vanden Eykel, Kate Pratt, Justin Whiddon, Taylor Joeckel, Fred Adams,* Ike Vanden Eykel,* Liz Porter,* Chris Meuse,* Laura S. Hayes,* and Lauren Shaw

FAMILY LAW IS NOT ONLY WHAT WE DO. IT’S ALL WE DO.

With more than thirty proven attorneys in four offices across North Texas, KoonsFuller is one of the largest family law firms in the Southwest. We offer clients a level of legal representation and range of resources unmatched by any other family law firm. Working together, as a fully integrated team, there is no case too large or complex for us to manage. To learn more about KoonsFuller, visit koonsfuller.com.

As recognized among Tier 1 U.S. News – Best Lawyers® “Best Law Firms” in Dallas/Fort Worth for Family Law by U.S. News & World Report L.P.

DALLAS** | 1717 McKinney Avenue, Suite 1500 | Dallas, Texas 75202 | 214.871.2727 DENTON | 320 West Eagle Drive, Suite 200 | Denton, Texas 76201 | 940.442.6677 PLANO | 5700 W. Plano Parkway, Suite 2200 | Plano, Texas 75093 | 972.769.2727 SOUTHLAKE | 550 Reserve Street, Suite 450 | Southlake, Texas 76092 | 817.481.2710 *Board certified in family law by the Texas Board of Legal Specialization. **Principal office.

KO O N S F U L L E R : D I V O R C E , C H I L D C U S T O D Y, P O S T- D I V O R C E M O D I F I C AT I O N S , C H I L D S U P P O R T, M A R I TA L P R O P E R T Y A G R E E M E N T S , E N F O R C E M E N T S , G R A N D P A R E N T ’ S R I G H T S , P A T E R N I T Y, C O L L A B O R A T I V E L A W , A N D A P P E A L S


14 H e a d n o t e s l D a l l a s B a r A s s o ciation

Focus

A pri l 2022

Energy Law/Environmental Law

Climate Change Lawsuits vs. Big Oil—What’s Going On? localities allege they will incur to combat climate change. Although some of these cases have been pending for nearly a half a decade, the fight--for the most part—has yet to turn to the merits. Instead, the focus of these cases has been procedural, with the parties fighting about whether these cases belong in state or federal court. With limited exception, the governmental entities have brought the cases in state court. The defendants have uniformly removed each case to federal court, contending that the actions raise several federal questions that can only be considered in a federal forum. Among other things, defendants argue that the claims relate to uniquely federal interests, including national energy production and environmental protections. Plaintiffs maintain that they have carefully limited their claims to defendants’

BY MATT STAMMEL AND REEM GERAIS

Since 2017, states and localities have filed over 20 cases against “Big Oil” alleging that these companies have engaged in conduct designed to mislead the public about the impact of fossil fuel use on the environment. A case brought by Rhode Island, for example, alleges that the companies “have known for nearly a half century that unrestricted production and use of their fossil fuel products create greenhouse gas pollution” and knowingly concealed this information in order to maximize profits. Rhode Island seeks to hold Big Oil liable under claims of public nuisance and strict liability for failure to warn. Similar lawsuits have been filed around the country on behalf of other governmental bodies, often by the same law firm, each attempting to hold defendants liable for the costs the

deliberate lack of disclosure to avoid the federal issues that would put these cases in federal court. The battle over the forum for these cases reached the U.S. Supreme Court last year in BP v. Mayor and City of Baltimore, 141 S. Ct. 1532 (2021). On June 10, 2019, after defendants removed the underlying case to federal court, the federal district court in Maryland rejected each one of defendants’ seven grounds for removal and remanded the case to state court. Defendants appealed. The Fourth Circuit held that an appeals court could only review a district court’s remand orders on grounds where Congress had made clear an immediate appeal from a remand order was allowed. Of the seven grounds for federal jurisdiction urged by defendants, only the Federal Officer Removal Statute allowed for an immediate appeal. Having limited its scope of review, it found that removal was not proper under the Federal Officer Removal Statute and affirmed the remand. Defendants convinced the Supreme Court to take the case. It ruled in a 7-1 decision that, so long as one ground for removal is immediately appealable, a federal appeals court should consider all grounds for removal urged by defendants. In its May 17, 2021 opinion, the Court ultimately declined to determine which forum was proper and instead remanded to the Fourth Circuit to decide the issue. In her dissent, Justice Sotomayor criticized the Court’s reluctance to rule on the issue of jurisdiction, noting that remanding the case

would only lead to further delays in the resolution of these cases on their merits. At the time of writing this article, the Tenth Circuit became the first court since the Supreme Court’s remand of City of Baltimore to rule on the issue of jurisdiction. In Boulder County Commissioners v. Suncor Energy, No. 19-1330 (10th Cir. 2022), the court affirmed the denial of all six grounds for removal raised by defendants—including the argument that the claims were preempted by the Clean Air Act (CAA)— and held that state court was the proper forum to hear these cases. This holding directly conflicts with an earlier Second Circuit decision, City of New York v. Chevron Corp., 993 F.3d 81 (2d Cir. 2021), where the Second Circuit determined that any challenges related to fossil fuel emissions by big oil companies were preempted by the CAA, and that the cases should be adjudicated in federal court. While the Supreme Court decisively passed the issue of proper jurisdiction to the circuit courts in City of Baltimore, it is clear that the issue is far from resolved. In fact, the Court may have to reconsider the issue soon as more circuits adopt divergent approaches. Until then, the issue of jurisdiction remains with the circuit courts, and any adjudication on the merits of the claims will wait for these procedural hurdles to be cleared. HN Matt Stammel is a Partner at Vinson & Elkins, and. Reem Gerais is an Associate at the firm. They can be reached at mstammel@velaw.com and rgerais@velaw.com, respectively.

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FBI, OIG, CMS Investigations

Medical License Revocations

Martin Merritt Chair, DBA Health Law (2021) Ex. Dir. Texas Health Lawyers Association Martin@MartinMerritt.com Dir. (214) 952.1279 Martin Merritt is your co-counsel in healthcare litigation cases. If one side has an experienced health lawyer in their firm and you do not, you can level the playing field by associating Martin Merritt as co-counsel. You keep the client. Hourly and flat monthly rates available. Martin can try the case, prepare and argue hearings, or simply serve as health law analyst. You stay in control of the case and keep the client. Experienced. Over 30 years, in Texas and nationally, Martin Merritt litigates cases against the FBI, DEA, OIG, CMS, AUSA, TMB, Tex. OAG, Tex. Med. Bd, Pharm. Bd., TXDSHS, Civil False Claims Act Subpoenas and lawsuits, civil investigative demands, arbitration, criminal and other administrative actions. He has a proven track record applying this knowledge to win victories for business litigators. (D Mag. Best 2018, 2020)

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Request of specific educational materials

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1-1, group telephone calls on topics

Friday noon AA telephone meeting 1-800-393-0640, code 6767456

Find out more at www.texasbar.com.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 15

­


16 H e a d n o t e s l D a l l a s B a r A s s o ciation

Focus

A pri l 2022

Energy Law/Environmental Law

Can You Dig It? Resolving Groundwater Contamination Voluntary Cleanup Program

BY JEAN M. FLORES

Nothing puts the brakes on a new construction or redevelopment project faster than environmental contamination, particularly groundwater contamination. The Texas Commission on Environmental Quality (TCEQ) offers numerous corrective action programs. The Texas Voluntary Cleanup Program (VCP) is a top choice because it, alone, offers a release of liability to the State. Under any cleanup scenario, however, groundwater contamination can derail a project due to the protracted regulatory requirements that apply. The gold standard for addressing groundwater contamination in Texas is a successful trip through the VCP with an assist in the form of a Municipal Setting Designation (MSD). These powerful tools can dramatically decrease the time and cost to receive a regulatory closure determination from TCEQ for a property with known contamination so that development can move forward with less delay.

The VCP is a brownfields program under Subchapter S of the Texas Solid Waste Disposal Act that provides a process and legal incentives for undertaking voluntary cleanup of contaminated property. TCEQ’s implementing regulations are found at 30 Texas Administrative Code Chapter 333. A party that successfully demonstrates to the TCEQ under the VCP that all response actions necessary to protect human health and the environment have been completed receives from TCEQ a “Certificate of Completion” (COC). The COC provides that a person who is not a “person responsible for solid waste” at the time COC is issued is thereafter released from all liability to the State for cleanup of areas of the site covered by the COC, except for releases and consequences that the person causes. To get to this point, a party (the applicant) must first submit a VCP Application to enter property into the program

STOP USING A SELFIE for your professional headshot! DBA Directory Photographer will be available to take photos for the 2022 Directory on:

Wednesday, April 13

9:00 a.m. – 2:00 p.m.

Photo session is FREE, requires no reservation and only takes a few minutes.

Monday, April 18

Photos may be purchased for personal use.

11:00 a.m. – 2:00 p.m. at the Arts District Mansion

Questions? Contact Judi Smalling at jsmalling@dallasbar.org or (214) 220-7452.

and sign a VCP Agreement with the State once the Application is approved. The VCP Agreement requires, among other things, the applicant to pay TCEQ’s oversight costs and indemnify the State. There are specified criteria for acceptance into the VCP and not every contaminated property will qualify. The Texas risk-based regulatory cleanup criteria, the Texas Risk Reduction Program (TRRP) at 30 Texas Administrative Code Chapter 350, are used to determine the cleanup standard under TRRP for impacted, or potentially impacted groundwater assumed to be potable. This assumption brings into play very stringent drinking water standards, which are sometimes extremely difficult to meet and can, in some cases, take decades to achieve. Here is where the use of an MSD can put a development project with contaminated groundwater back on a competitive schedule.

Municipal Setting Designation

The MSD is a tool for the State to recognize that contaminated groundwater in an urban setting, such as in Dallas, is not used as potable water. An approved MSD prohibits such groundwater from future use as potable water through a municipal ordinance or a restrictive covenant enforceable by the municipality and filed in the property records. MSDs, which were created as a legislative amendment to the TRRP standards, do not stand alone as a regulatory fix for a contaminated property. Rather, MSDs modify the cleanup standard used for a TCEQ closure program, like the VCP. The MSD’s power here is that it makes

soil and groundwater cleanup levels based on safe drinking water standards inapplicable under TRPP. By eliminating the need to remediate contaminated groundwater, and by adjusting soil standards (potentially reducing the amount of soil that will need to be removed or otherwise remediated), an MSD can significantly shortcut the path to TCEQ-approved closure. The process for obtaining an MSD requires coordination with both TCEQ and a municipality. The applicant must first obtain a municipal ordinance or restrictive covenant in support of the MSD by the applicable municipality and certain entities owning groundwater supply wells within a five-mile radius. This introduces a political component into the approval process. The process then requires TCEQ certification of the municipal ordinance or restrictive covenant, which ultimately is evidenced by TCEQ’s issuance of an MSD certificate. With the project clock ticking, the applicant should begin working with the municipality on the MSD at approximately the same time the property enters the VCP, if not before. These delicate regulatory and political processes typically are navigated with environmental legal counsel and technical consultants who have long-standing relationships with both the TCEQ and the municipal regulatory personnel. When executed properly, the VCP and MSD work together to bring closure to properties with groundwater contamination more quickly, “paving” the way for the robust development underway in our neck of North Texas. You can dig it. HN Jean M. Flores is a Founding Shareholder at Guida, Slavich & Flores, P.C. She can be reached at flores@guidaslavichflores.com.

Sustaining Members of the Dallas Bar Association The DBA sincerely appreciates the following Sustaining Members whose financial contributions enhance the preservation of the historic Mansion. Thank you.

As of March 10, 2022 Randolph D. Addison Addison Law Firm P.C. Micah Adkins The Adkins Firm, PC

David L. Godsey Godsey - Martin, P.C.

Mike McKool McKool Smith P.C.

Haley Grissom Caldwell Cassady & Curry

Nancy A. Nasher NorthPark Development Company

Krista Hanvey Gibson, Dunn & Crutcher, LLP

Robert H. Osburn Law Office of Bob Osburn

Mary B. Campbell Law Office of Mary B. Campbell

James J. Hartnett, Jr. The Hartnett Law Firm

Roy Powell Jones Day

Christina Heddesheimer Dentons US LLP

David Carlock Carlock & Gormley

Houston E. Holmes, Jr. Attorney at Law

Ellen S. Pryor UNT Dallas College of Law

Wm. Kevin Cherry Cherry Petersen Landry Albert LLP

John K. Horany John K. Horany, P.C.

Carmen Blankenship Law Office of Carmen Blankenship

David A. Eldridge Law Office of David A. Eldridge Al Ellis Sommerman, McCaffity, Quesada & Geisler, L.L.P. Stephanie Elovitz Munck Wilson Mandala, LLP Gary Fish Texas Retina Associates Knox Fitzpatrick Knox Fitzpatrick PC William Galerston Iola Galerston, LLP J. Richard Gallagher Law Offices of J. Richard Gallagher

Kathleen E. Irvin Attorney at Law Kristina N. Kastl Kastl Law, P.C. Sang Eun Lee Greenberg Traurig, LLP Ron MacFarlane The MacFarlane Firm, PC Joshua Mahaffey Brown Fox PLLC Justin Martin Godsey - Martin, P.C. Stewart D. Matthews S.D. Matthews & Associates, PLLC Sawnie A. McEntire Parsons McEntire McCleary PLLC

Glynis W. Redwine G Redwine, PLLC Angel L. Reyes, III Reyes Browne Reilley S. Theis Rice Trinity Industries, Inc. Michael L. Riddle Middleberg Riddle Group Mark J. Siegel Law Offices of Mark J. Siegel, P.C. Darryl J. Silvera The Silvera Firm Damon D. Tanck Watson Law Group, PLLC Peter S. Vogel Foley & Lardner LLP Hon. Ingrid Warren Dallas County Probate Court No. 2

2022

Dallas Bar Association

DEI CLE Challenge The DBA encourages its members to aspire to complete 3 hours of CLE training in the areas of diversity, inclusion, and equity each calendar year. The DBA will recognize members who complete and self-report their 3 hours of DEI CLE by December 31, 2022. Programs that qualify will be identified on the DBA’s online calendar.

Join the Challenge

to be recognized in the February 2023 Headnotes, in DBA Online, and receive your electronic DEI CLE Challenge badge.

Scan to learn more and report your hours.


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 17

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WE LOVE GOING TO COURT. COURT IS LAWYER DISNEYWORLD! NOTHING IS MORE FUN. BUT COURT IS A HORRIBLE EXPERIENCE FOR A PARENT TO HAVE TO GO THROUGH. SO WE DO EVERYTHING POSSIBLE TO FIND A HEALTHY NEGOTIATED PALMER LAW GROUP SOLUTION. WE ARE EXCELLENT AT SOLVING CASES. · · BUT, IF ALL ELSE FAILS... WE’VE GOT YOU. ●

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18 H e a d n o t e s l D a l l a s B a r A s s o ciation

A pri l 2022

ECL Flourishes in Dallas Legal Community STAFF REPORT

Now in its third year, the DBA’s attorney incubator program, Entrepreneurs in Community Lawyering (ECL), has launched 25 thriving solo practices providing representation for everyday people. “What started as an experiment in 2019 has flourished into a remarkable program,” said Saedra Pinkerton, director of the program. “It has been a privilege to watch these attorneys from all walks of life and with all levels of experience work incredibly hard and give so much to their community.” Determined to address access to justice issues, then DBA president Laura Benitez Geisler started the program in 2019 to provide a blueprint for entrepreneurial-minded Dallas attorneys wanting to run an affordable and profitable law firm. The program provides mentoring, office space and training specific to starting a successful small business. In addition to offering reasonable rates and flexible payment plans, the ECL attorneys also commit to provide 200 hours of pro bono service during their year in the program. “Whatever the legal issue, there’s probably an ECL attorney practicing in that area,” Pinkerton said. “Our attorneys cover immigration, family law, probate, special education, estate planning, criminal defense, small business—you name it. We love to receive referrals from attorneys who have more cases than they can handle or aren’t able to offer discounted pricing.” Attorney Sussana Ampem, class of 2020-21, is proud of the work she has done since launching her firm through ECL. “As part of my family-immigration

ECL Class of 2021-2022

practice, I have focused my modest means work on clients who are victims of domestic violence,” Ampen said. “Under the Violence Against Women’s Act, a legal path for lawful immigration status was created for victims of domestic abuse who normally would need to rely on their abusers to file for legal status here in the United States. My work has allowed me to provide legal services to these survivors and gives me great pride in knowing that I am providing tangible results for an underserved community.” Megan Erinakes, member of the ECL inaugural class, was named a 2022 SuperLawyers Rising Star. “The ECL program gave me the foundation I needed to start my firm and keep my firm growing. I received so many resources which helped me on

my journey,” Erinakes said. “The most valuable part of the ECL program was being a part of group of like-minded lawyers. My cohorts and I continue to meet monthly in order to check in with each other and see how we can help.” The 2020-2021 class had the extra benefit of mentorship from the inaugural class, and the current group has two classes of prior members providing support and mentorship. “Serving the community doesn’t just happen,” second-year ECL member Sanford Holmes said. “ECL connects you to the people you want to serve and the community of attorneys who value what you do. From the dedicated program director, to the guest attorneys, to the unending connections to local potential mentors, ECL helps get you the guidance every attorney needs to

chart a successful course.” ECL attorneys accept pro bono cases through the Dallas Volunteer Attorney Program, Human Rights Initiative, RAICES, and more. “Our attorneys have completed over 5,000 hours of pro bono since the beginning of the program,” Pinkerton said. “In addition to providing much-needed legal representation, the attorneys benefit from the mentorship and training offered by our pro bono partners. A member of the inaugural class, attorney Katherine “Kate” Kim says the program was vital in launching her business. “Building a firm through ECL gives attorneys tools to actually run a business (something we don’t really learn in law school) and directly connects you with a professional network of entrepreneurial and service-minded attorneys,” Kim said. “I am most proud of the work I continue to do with pro bono organizations. I was thrilled to be recognized as a volunteer attorney by the Texas Lawyers for Texas Veterans program!” “So many seasoned Dallas attorneys have volunteered their time to mentor our attorneys,” Pinkerton said. “Their support has been instrumental in our program’s success.” Special thanks to ECL mentors Alison Grinter Allen, Ditty Bhatti, Vincent Bhatti, Monica Lira Bravo, Holly Draper, PJ Dunn, Jack Fan, Alexandra Geczi, Mike Howard, Beth Johnson, Rachel Khirallah, Elaine Mosher, Ebony Rivon, Chad Ruback, Anjie Vichayanonda, Kandace Walter, and Ellen Williamson. Interested in learning more or applying for a future class? Email Ms. Pinkerton at ecl@dallasbar.org or visit www.dallasbar.org/ECL. HN

REGISTER NOW! Online Annual Evening Ethics Fest Thursday, May 12, 2022 5:30 – 8:30 p.m. | Ethics 3.00 Registration Fee: Free for DBA members! Non-members: $145 For more information contact Marcela Mejia at (214) 220-7410 or mmejia@dallasbar.org. Sponsored by the DBA Legal Ethics Committee

REASONS TO HIRE A HIGH SCHOOL INTERN FOR THE SUMMER Catch up on filing Help making copies Help clean/organize ignored spaces Front desk relief Research assistance Give a student work experience for their college resume Much more! Interested? Contact Melissa Garcia at mgarcia@dallasbar.org


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 19


20 H e a d n o t e s l D a l l a s B a r A s s o ciation

Focus

A pri l 2022

Energy Law/Environmental Law

Management of Environmental Risk in Real Estate Transactions BY HOWARD L. GILBERG

The proliferation and better use of legal tools to manage business risks associated with environmental impairments of real property (EI) are important contributors to North Texas’ burgeoning real estate market. In this article, “environmental impairments” refer to pollution of land, ground water, or surface water. EI business and legal risks arise from federal and complementary state laws that impose environmental investigation and remediation responsibilities on all current owners and many past owners of real property. In the environmental vernacular, these entities are identified as potentially responsible parties or simply PRPs. The environmental risk management decision made by a prospective purchaser of real property (and its lender if that property is to be collateralized at closing) is whether it is willing to become a PRP when it closes the transaction. PRP statutory liability is strict, and joint and several; it is not a prerequisite that the PRP have contributed to the EI condition. Purchase and Sale agreement (PSA) EI risk allocation is generally legally effective between the contracting parties but is generally ineffective when it comes to government claims, and non-contracting private party claims. This is where envi-

ronmental tools provide much of their value. Environmental information is key. The more information, the better the EI risk management opportunities. Purchasers should contractually require all information in seller’s possession, custody, or control to be disclosed. Seller may have reports from their original acquisition that are probative. Seller may have initiated environmental information gathering prior to its marketing the property. If the seller intends to take this step, it is advisable to consider invoking the Texas Environmental, Health and Safety Audit Privilege Act (Audit Act). While there are advantages to a seller taking this approach, there are disadvantages too. Among other things, some EI discoveries may trigger government notification obligations. Purchaser’s decision whether to acquire its own Phase I Environmental Site Assessment is discretionary but highly advisable. If a lender is involved, count on the lender requiring a current Phase I. Note, there is a new 2021 standard. Be mindful of the Phase I environmental engineering firm’s contract terms. Consider whether purchaser’s counsel or purchaser engages this firm. The Phase I process balances cost, timing, and business risk. It informs of likelihoods or probabilities of, but not actual environmental problems

SUPPORT THE

because no physical field testing occurs. The Phase I standard does not require recommendations for further investigation from the engineering company, though they are often provided. If they are not desired, inform the engineering company at the outset. If further field testing is performed and EI is confirmed, the parties should consider among other things the following tools, alone or in combination: 1. Create a Single Purpose Entity (SPE) to acquire and hold title, which creates the opportunity to possibly isolate PRP legal and financial exposure. 2. Acquire only that portion of the real property without EI. Be mindful that known EI may naturally migrate in the subsurface or upward into the air. The parties might negotiate the seller’s right to “Put” the property to the purchaser on specific terms once the EI has been resolved. 3. Renegotiate PSA financial terms. Environmental costs are inherently uncertain until the final invoice is paid. Seek a range-of-cost estimate from the environmental engineering company. 4. Renegotiate PSA environmental provisions. Negotiate which party will investigate and remediate the EI should that be necessary or advisable, and whether that action will be a condition to closing or occur postclosing. If the latter and if seller will be financially obligated, consider a remediation agreement and post-clos-

ing escrow account. Entering the property into the Texas Commission on Environmental Quality (TCEQ) Voluntary Cleanup Program (VCP) prior to closing typically results in issuance of a legal release to the Purchaser for government claims when the agency’s satisfied. If EI originates from offsite, consider TCEQ Innocent Owner/ Operator program. 5. Focus on groundwater impairments, if any. Non-potable groundwater meeting TCEQ numeric criteria and groundwater located within a city or its ETJ satisfying Municipal Setting Designation criteria is subject to more relaxed standards and thus is less costly to address. 6. Among other things, exercise caution in relying on “where is, as is” provisions. Be wary of general “compliance with laws” provisions. 7. Consider environmental insurance. Coverage language is very negotiable; engage an experienced environmental insurance broker and environmental counsel. 8. Consider other government and private funding sources dedicated to environmental remediation. 9. Close the deal or terminate the transaction. Parties should be mindful of other environmental tools to maximize their position. HN Howard L. Gilberg, of Gilberg Law, PLLC, can be reached at hgilberg@gilberglaw.com.

DBA HOME PROJECT

Help us reach our goal of $90,000 to build our 32nd house for Habitat for Humanity. For more information, log on to

www.facebook.com/DBAHomeProject

or contact David Fisk (dfisk@krcl.com) or Mike Bielby (mbielby@velaw.com).

Make checks payable to Dallas Area Habitat for Humanity and mail to: c/o Araceli Rodriguez

Conference of the Professions “Mis- and Disinformation in the Professions: Vaccines, Voting, and Virtue”

Dallas Bar Association, 2101 Ross Avenue, Dallas, TX 75201

Friday, May 27, 9:00 a.m. – Noon | at SMU Campus Keynote Speaker: Christine Emba opinion columnist & editor, The Washington Post www.smu.edu/Provost/Ethics/Events/COP/COP2022

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$48.75 for Adults $15.00 for Children 6-12 Free – Children under 6 Reservations required culinairesales@dallasbar.org 214-220-7404


April 2 0 2 2

D al l as Bar A ssoci ati on l Headnotes 21

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22 H e a d n o t e s l D a l l a s B a r A s s o ciation

A pri l 2022

DBA Relaunch! DBA Relaunch is a program designed to help attorneys who have left the profession for any number of reasons explore a new path in the practice of law. The program provides substantive workshops, coaching, and guidance on everything from discovering individual strengths, interests, and meaning, how to channel these into relaunching a satisfying career, and interviewing, networking, and reconnecting with the profession. On February 22, the Relaunch class kicked off its year with a half-day program titled “Empowering You!” Coaches and speakers presented on topics such as strength finders, resume reviewing, and finding your purpose. Jennifer Aufricht, Susan Cooper, Janice Henderson, Chris Ladd, and Betty Ungerman shared their stories on a “Relaunch Comeback Stories” panel. For more information about DBA Relaunch, contact Viri Rodriguez at vmejia@dallasbar.org.

DALLAS BAR ASSOCIATION

LAW DAY LUNCHEON FRIDAY, APRIL 29 NOON - 1:15 PM ARTS DISTRICT MANSION (2101 Ross Avenue, Dallas, TX)

Individual Ticket: $75 Table of 10: $750 Sponsored by:

Register at DallasBar.org

KEYNOTE SPEAKER CYNTHIA “CYNT” MARSHALL CEO of the Dallas Mavericks President & CEO, Marshalling Resources Consulting Retired AT&T SVP-Human Resources & Chief Diversity Officer

Interviewed by Krisi Kastl, 2022 DBA President

DVAP’s Finest JASON TYRA

Jason Tyra is a sole practitioner. What types of cases have you accepted? I am also a CPA, so I like to take cases that have a financial angle to them. I have taken DTPA, debt collection, and estate planning matters, and a few will drafting cases. Describe your most compelling pro bono case. To me, the cases I accept are all compelling because I only take cases that I think I can win (or at least create an improved outcome for the client). The debt cases are my favorite. There is rarely a fact question as to whether the client actually owes the money. The real questions are whether he or she owes it to that specific lender/plaintiff and whether that plaintiff has done the work to properly assert a claim. There are so many opportunities for individual citizens to be squashed by assembly line litigation (foreclosures, evictions, consumer debt) and it is rare for someone to have the wherewithal to fight back. Why do you do pro bono? The work I normally do tends to have less busy periods during the year and it’s a good way to fill lag times. What impact has pro bono service had on your career? The biggest difference is that the work has put me in front of clients I never would have encountered otherwise. A lot of people just need one thing that is quick and easy for a good lawyer, but out of reach to a pro bono client. To put this another way, I know lots of attorneys that I can ask for help if I need it; most pro bono clients know none. What is the most unexpected benefit you have received from doing pro bono? In a few cases, pro bono clients have referred friends or relatives who became regular clients.

Pro Bono: It’s Like Billable Hours for Your Soul. To volunteer or make a donation, call 214/748-1234, x2243.


April 2 0 2 2

Focus

D al l as Bar A ssoci ati on l Headnotes 23

Energy Law/Environmental Law

You Want to Build Here? Oh Well… BY RHODES HAMILTON

In early 2000s Barnett Shale development was situated in locations around existing urban centers or in the path of future development. Setbacks, drilling, and noise ordinances were soon commonplace as the two competing land uses worked to coexist as the distance between them shrank. While development of the Barnett Shale has dropped off as oil and gas companies moved on to the next shale formation, existing wells remain in the path of urban sprawl, as residential and commercial development in the metroplex has continued at a rapid pace. Unlike an outdated apartment complex, a bulldozer does not cure all that ails. So, what are a developer’s options if they want to develop a property with an operating well or a well that has ceased producing? What can and cannot be done to the surface of the property in contemplation of development is often governed by the terms of the oil and gas lease or a surface use agreement. In addition, what happens once the lease or well terminates is also defined in those agreements. Common provisions may include steps to be taken upon termination or plugging of a well; steps to remediate the surface estate to its prior condition; steps to address any environmental condition; and most importantly, designation of who pays for any or all of the above. Any acquisition of the surface is going to obviously be subject to the pre-existing oil and gas agreements in place, as well as subject to the general premise that in Texas the surface estate is subject to the dominant mineral estate. But that does

not mean that development of the surface is prohibited. A first step is to be aware of the existing documents and uses of the property to be acquired or developed. Precursory due diligence or a title commitment should list those related documents and a closer inspection of those documents is important to know how to proceed. In the event that the title commitment does not identify any oil and gas instruments, consideration should be given to hiring an abstractor to locate and obtain the records. The costs can vary, but as discussed below, the peace of mind provided can be invaluable. If the well is going to remain on the property, then a developer will need to be sure to respect the existing agreements and ensure that their development plans fit within the scope of those instruments. As stated above, a developer’s rights will be subject to those documents and their terms. Common provisions may include setbacks from wells for new construction, access to and from the well, and repair and maintenance of roadways. Presently, the Railroad Commission does not have a statewide setback ordinance for wells; however, cities and counties have enacted their own ordinances covering development around a well site. Developers should be mindful of the local ordinances in place prior to planning. While the co-existence of a well and development is not unheard of, most developers would no doubt prefer to go about their business without the hinderance of a well on their property. Another route is to approach the owner of the well about potentially plugging the well. It is not uncommon for the purchaser of the surface to negotiate with the owner of the well to

have the well plugged. If the well has been producing for a long time, an upfront payment to “buy” the well could be worth more to the operator than the current or future production for an aging well. Any agreement to plug a well should be planned out and should cover many contingencies. The cost to plug a well depends on its location, depth, the quality of the well, and whether it was a vertical or horizontal well. The costs can vary greatly, from several thousand dollars to upwards of a million dollars. Only a qualified contractor should be allowed to plug a well and agreements should be in place to protect parties in the event of any mishaps during the plugging process. An error in the plugging of a well can lead to very undesirable issues in the future, compounded if substantial improvements are added to the surface. Additionally, there may be prior ease-

ments granted that could impact future development. Therefore, a developer should consider getting releases from the easement holders or alternatively, investigating whether those easements have terminated upon termination of the underlying lease. The same issue arises with respect to pipelines. Like easements, if a well or lease has terminated, the pipeline may be required to be removed. There may also be oilfield equipment, tank batteries, or other above-ground equipment that may need to removed. For developers, repurposing a site that previously had a well, or co-existing with a current one, are viable options as long as a thorough and diligent review of the laws and agreements in place are conducted. HN Rhodes W. Hamilton is a Partner at Hamilton Squibb & Shores. He can be reached at rhamilton@hamiltonsquibb.com.

Office Space, Position Wanted, Positions Available, Services

Classified Ads available Online Contact Judi Smalling jsmalling@dallasbar.org 214-220-7452 www.dallasbar.org

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Communities Foundation of Texas | 5500 Caruth Haven Lane, Dallas, TX To learn more or to register, visit CFTexas.org/Seminar2022


24 H e a d n o t e s l D a l l a s B a r A s s o ciation

Catastrophic Injury | Wrongful Death

A pri l 2022


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