Natural Gas Pipeline Co. of America v. Pool
Supreme Court of Texas
124 S.W.3d 188 (2003)
J.T. Sneed executed three oil and gas leases. The leases provided that they would remain in effect so long as minerals were produced. The lessees (defendants) drilled wells on the subject property. The wells failed to produce at varying times and for varying lengths of time over the course of the lease term. The lessees continued producing oil and gas, however, and continued paying royalties to the lessors, Sneed’s successors in interest (plaintiffs). The subject wells’ last periods of nonproduction were in 1969 and 1984. The plaintiffs sued the lessees in 1998, arguing that the leases had terminated for lack of production. The trial court ruled in favor of the plaintiffs, finding that the leases had terminated. The court of appeals affirmed and found that the lessees had not acquired title by adverse possession, because the plaintiffs had not been notified of repudiation of title. The lessees appealed.
Rule of Law
Holding and Reasoning (Owen, J.)
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