The Superior Oil Company v. Roberts
Supreme Court of Texas
398 S.W.2d 276 (Tex. 1966)
The heirs of Bob Roberts (plaintiffs) owned a one-half interest in a tract of land, while Estella Todd and James Craven (co-owning the other half) leased their oil and gas rights to The Superior Oil Company (defendant) under leases containing pooling clauses. Superior offered the Roberts heirs a similar lease, which they declined, and they never signed the resulting pooling agreement with nearby owners; production came from the pooled unit but not from the specific land the plaintiffs, Todd, and Craven jointly owned. The plaintiffs sued Todd and Superior, arguing the pooling agreement effectively made them cotenants entitled to a share of the pooled unit's production; the trial court and court of civil appeals both ruled for the plaintiffs, and the defendants appealed.
Whether a cotenant of one tract who never signs a lease or a unitization agreement becomes, by virtue of a co-owner's separate participation, a cotenant entitled to production proceeds from the other pooled tracts.