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Texas Co. v. Parks

247 S.W.2d 179 (Tex. Civ. App. 1952)

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Texas Co. v. Parks

Texas Court of Civil Appeals

247 S.W.2d 179 (Tex. Civ. App. 1952)

Facts

L.D. Parks (plaintiff) owned an undivided one-half interest in a tract of land. Parks executed an oil and gas lease that was later acquired by The Texas Company (TTC) (defendant). The lease described Parks’s fractional interest and thereafter continually referred to “said land.” The lease included a $160 per year delay rental if drilling did not commence on the land. The lease also included a proportionate reduction clause, which stated that if Parks owned an interest in the land that was less than the estate conveyed, the rental would be reduced proportionately. TTC did not commence drilling and paid Parks an $80 delay rental. Parks refused to accept this. Based on the proportionate reduction clause, TTC maintained that given that Parks owned a one-half interest, the rental owed was one-half of $160, or $80. Parks brought suit to cancel the lease. The trial court found in his favor. TTC appealed.

Rule of Law

Issue

Holding and Reasoning (Renfro, J.)

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