Wagner & Brown, Ltd. v. Sheppard
Supreme Court of Texas
282 S.W.3d 419 (Tex. 2008)
Termination of a lease does not necessarily also automatically terminate a pooling agreement that was entered into pursuant to the lease.
Relevant Facts
Jane Sheppard owned a one-eighth mineral interest in a tract of land and leased it to C.W. Resources, Inc. (CWRI). The lease allowed CWRI to pool the lease with adjacent tracts. The lease also specified that if royalties were not paid within 120 days of oil or gas being sold, the lease would terminate the following month. CWRI entered into a pooling agreement for the Sheppard tract, which was operated by Wagner & Brown, Ltd. (Wagner). Although gas was produced and proceeds were split as per the pooling agreement, Sheppard did not receive royalties within the first 120 days, leading to the termination of her lease with CWRI. Sheppard filed for summary judgment to confirm that the lease termination also terminated the pooling agreement.
Issue
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Holding & Reasoning
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Concurrence
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Dissent
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Last updated:
December 8, 2023
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Procedural History
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Citations
282 S.W.3d 419 (Tex. 2008)