Texas Co. v. Parks

Parks (plaintiff), owner of an undivided one-half interest in a tract, leased that interest to a predecessor of Texas Co. (defendant) under a lease describing his fractional interest and setting a $160 annual delay rental if drilling did not commence, along with a proportionate reduction clause reducing rental if Parks owned less than he purported to lease; when drilling did not commence, Texas Co. paid only an $80 delay rental, arguing the clause entitled it to pay half the stated rental since Parks owned only a one-half interest, and Parks sued to cancel the lease after refusing the reduced payment, with the trial court ruling in his favor.