Elon Musk Fights For Gas Wells In Texas To Drill Fuel For Mars Rockets

The Starship SN8 prototype during landing as one of its engines reignites. Re-ignition was a fundamental non-NASA testing parameter which was successfully met during the prototype's exam in December last yr. Image: SpaceX/Twitter

Space Exploration Technologies Corp. (SpaceX) stood downwards from its first rideshare mission of 2021 earlier today every bit weather condition conditions at the United States Space Force's Cape Canaveral Infinite Forcefulness Station in Florida did not permit the company's Falcon 9 with a tape payload of 143 satellites to liftoff. Still, as SpaceX manages an aggressive launch cadence with its workhorse Falcon 9, the company's got its eyes assail the futurity as it continues to develop the Starship launch vehicle platform for interplanetary missions.

Now, every bit SpaceX chief Elon Musk has officially moved to Texas, his company is head to head against a privately held oil and gas exploration and production company Dallas Petroleum Group, LLC (DPG). The dispute is centered around SpaceX's access to wells in Cameron County, Texas for Methyl hydride, which will fuel Starship's full-flow staged-combustion Raptor engines.

This dispute, which is currently being evaluated past the Texas Railroad Committee and the 445th District Court of Cameron Country involves the possession of two wells located in a 24-acre area in Cameron Canton, with SpaceX's land acquisition affiliate Dogleg Park and Dallas Petroleum each challenge that they have the sole rights for using the wells.

SpaceX Waits Every bit Hearing For Transfer Of Methane Wells For Starship Nears

The dispute started in May concluding year when Dogleg secured the right to operate the two wells (2R and iii) following which DPG locked the well site and stopped Dogleg from entering. It as well sued both Dogleg and three other companies for both infringing its rights and for not recognizing that it is the sole owner of the 24 acres of state surrounding these wells.

Prior to the SpaceX chapter securing the rights, DPG had in fact entered into a buy and sale agreement (PSA) with Texas-based Sanchez Midstream Partner, LP. The PSA document had explicitly stated that "Sanchez Midstream Partners, LP, including its related entities and affiliates [EMPHASIS ADDED]" would sell their rights to the holding that was the field of study of the document to DPG.

However, the 'hoodwinkery' (if we must employ such a term) took place in the Conveyance, Assignment and Bill of Sale document that the PSA required Sanchez Midstream to execute. This document was entered into by SEP Holdings IV, LLC, some other visitor affiliated with Sanchez Midstream and also operating from Texas. But it did non include the 'related entities and affiliates' clause highlighted above. This, equally yous'll see, turned out to piece of work in SpaceX's favor more than two years afterwards when Dogleg Park entered the picture.

Did Lack Of Due Diligence From DPG's Terminate Tilt Tables In SpaceX's Favor?

As information technology turned out, the record title of the 24 acres under dispute was in fact held by a third entity dubbed as Sanchez Oil & Gas Corporation (SOG) who shares its address in Texas with Sanchez Midstream. And so while equally a Sanchez Midstream affiliate SOG was bound by the PSA, the fact that the Conveyance document did not explicitly incorporate the same 'affiliates' clause, SOG was able to conduct additional deals for the land and the wells.

The offset of these deals took place in May last twelvemonth when Dogleg leased the land from SOG, and the second took place in September when it entered into an agreement to purchase the land. Post-obit the May deal, DPG went ahead and denied Dogleg admission to the land and proceeded to file a Lis Pendens (suit pending) notice for the belongings.

Information technology was in this notice that it explicitly mentioned SOG as the state's latest owner - a fact that Dogleg points out in its countersuit against DPG.

The Observe of Lis Pendens as cited by Dogleg Park in its countersuit against DPG.

While Dogleg allegedly secured the surface estate to the land from SOG, the mineral estates take been secured by another SpaceX affiliate Lone Star Mineral Evolution, LLC. Lone Star has shared a plethora of lease documents with the TRC including those that mention these mineral estates besides. This sharing came in response to the Committee pointing out that Lone Star did not share any prove for its right to operate the properties that DPG claims to own.

The RRC asked Lonely Star to provide these documents after the company complained to the regulator that the RRC Form P-4 which certifies the transfer of operator from ane entity to another were not being signed past DPG. In this complaint, the SpaceX affiliate also states that it has caused, "oil and gas leases covering in excess of 79% of the mineral involvement" of wells 2R and 3.

The Mineral Deed for a tract of land transferred to Lone Star. Epitome: RRC records

SpaceX Affiliate Secures More than Than 79% Of Crucial Mineral Rights For Drilling In Cameron County

So while Dogleg'southward ownership of the surface interests of the country took identify via the understanding with SOG, the mineral interests were acquired by Lone Star - who is at present pressing the RRC to grant it operational right to the wells as well. For the uninitiated, in Texas constabulary mineral rights hold precedence over surface interests, so at the surface (forgive us) it appears that SpaceX is in quite a strong position.

While neither the court documents nor the charter documents or the RRC complaint state that the minerals from the wells will be used for Starship, Solitary Star's attorney Tim Geroge'southward statements made before the RRC in yesterday's hearing for his company'due south complaint confirm that this will be the case. Mr. George confirmed that Lone Star will excerpt methane from the ground, and given that the Raptor engine uses this as its fuel, the rest is cocky-explanatory. Now that the hearing is complete, RRC Judge Jennifer Cook volition evangelize a determination at her discretion which will then have to exist approved by the committee's commissioners.

The Cameron State court is set to hear the case next month and the time to come of SpaceX's plans to drill on these lands unencumbered will be clear once both the court and the RRC attain their decisions. For its office, SpaceX continues to refine the Starship SN9 epitome ahead of a highly anticipated test flight that might take place side by side calendar week according to Mr. Musk. Should this happen successfully, and so information technology will be the 2nd high altitude test flight for Starship, with the last one having taken place in December, following which the SN9 prototype suffered an accident and delayed a quick successive test.