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Amoco Production Co. v. First Baptist Church of Pyote

Texas Court of Civil Appeals

579 S.W.2d 280 (Tex. Civ. App. 1970)

Relevant factsFree

Amoco (defendant) pooled the church's (plaintiff) leased gas interests with other working interests and sold all the gas attributable to those pooled interests to Pioneer, a buyer paying roughly half the price that comparable buyers Lone Star and Delhi paid other pooled interests from the same well, due to Amoco's own preexisting long-term contract with Pioneer; the church sued for breach of the implied duty to market, and the trial court awarded the difference between what the church received and what it would have received at the Lone Star price.

IssueFree

Whether a lessee to an oil and gas lease has an implied duty to market the minerals at the prevailing market price.

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