Quimbee logo
DMCA.com Protection Status
From our private database of 18,400+ case briefs...

Sunac Petroleum Corp. v. Parkes

Supreme Court of Texas
416 S.W.2d 798 (Tex. 1967)


O’Hern executed an oil and gas lease to Parkes (plaintiff). Parkes assigned his interest, reserving a royalty for himself. The interest was later assigned to Sunac Petroleum Corporation (Sunac) (defendant). The lease provided for extension beyond the primary term in two ways: (1) if the lessee drilled a dry hole or ceased production, the lease could be extended by additional drilling or reworking operations within 60 days; or (2) if the lessee was engaged in drilling operations without production at the expiration of the primary term, the lease could be extended by continued drilling or reworking operations so long as those operations did not cease for a period of more than 30 days. The lease also stated that the lessee could pool the leasehold with a larger unit, and that production within the larger unit would extend the lease beyond the primary term. Sunac pooled the lease pursuant to this provision, but for gas purposes only. There was not yet production at the expiration of the primary term, but a well was being drilled within the gas unit, although not on Sunac’s leasehold. This well produced oil in paying quantities when completed. Sunac then commenced drilling operations for a well on the leasehold. Under the theory that the original lease had expired, Sunac signed a new oil and gas lease with the lessors and stopped paying Parkes the royalty due under the original lease. Parkes brought suit against Sunac. The trial court ruled in favor of Parkes. The Texas Court of Civil Appeals affirmed. Sunac appealed.

Rule of Law


Holding and Reasoning (Greenhill, J.)

Dissent (Hamilton, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 496,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 496,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,400 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial