6
CASENOTE
In re EOG Res., Inc., No. 02-13-00440-CV, 2014 WL 580178 (Tex. App.—Fort Worth Feb. 12, 2014, no pet.)
(mem. op.), held that Lessee’s geologic and seismic data was privileged trade secret information and not subject to
pre-trial discovery by Lessor absent a showing that the information requested was necessary to prevent fraud or an
injustice. David and Shelly Richey (“Lessor”) filed suit alleging that their oil and gas lessee, EOG Resources, Inc.
(“Lessee”), failed to include Lessor’s land in a pooled unit located near their property and that Lessee improperly drained
oil and gas from their property. In discovery, Lessor requested Lessee’s geologic and seismic data located within one
mile of their property, which both parties agreed was privileged trade secret information. Texas Rule of Evidence 507
establishes the privilege to refuse to disclose a trade secret, but only if the suppression of the trade secret information
does not result in fraud or injustice. When it is established that the information requested is a trade secret, the burden
shifts to the party requesting production to establish that the information is necessary for a fair adjudication of the claims.
Lessor’s expert witness testified that the geologic and seismic data was “pertinent,” “helpful,” “essential,” and
“necessary” to Lessor’s claim. However, the expert failed to explain why the data was “necessary” and conceded that the
Lessor could have obtained the same information themselves but for “cost and [lack of] expertise.” The expert also
testified that it “probably” would not do Lessor any good to spend Lessor’s own money on obtaining such information.
The court concluded that Lessor did not demonstrate that the “failure to obtain the trade secret information sought would
so impair the presentation of the case that the result would be unjust.” The court also noted that records about operations
in a common reservoir are generally available from the Railroad Commission. Therefore, the court held that Lessor
failed to meet Lessor’s burden under Rule 507 and