Petropro, Ltd. v. Upland Resources, Inc.
Texas Court of Appeals
279 S.W.3d 743 (Tex. App. 2007)
The King “F” No. 2 gas well (King well) was located within a large pooled gas unit. L & R Energy (L & R) (plaintiff) acquired interest in the King well via an assignment from KCS Medallion Resources (KCS) and MB Operating Co., Inc. (MB) (defendants). The assignment conveyed: “All of Seller’s right, title and interest in and to the oil and gas leases . . . insofar and only insofar as said leases cover rights in the wellbore of the King ‘F’ No. 2 Well.” Upland Resources, Inc. (Upland) (defendant) drilled three gas wells in the unit near the King well. Subsequently, L & R assigned its interest in the King well to Petropro, Ltd. (Petro) (plaintiff). Petro and L & R brought suit against KCS, MB, and Upland for trespass and conversion, and sought payment from the production from Upland’s three wells. Petro argued that it owned the exclusive right to produce gas in the pooled unit at the depth of the King well. Petro also argued that it owned the exclusive right to rework the King well to recover gas from different depths so long as they could be reached from the current wellbore. The trial court granted Upland’s motion for summary judgment. Petro appealed.
Rule of Law
Holding and Reasoning (Pirtle, J.)
Dissent (Campbell, J.)
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