The Superior Oil Company v. Roberts

398 S.W.2d 276, 24 O. & G.R. 77 (1966)

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The Superior Oil Company v. Roberts

Supreme Court of Texas
398 S.W.2d 276, 24 O. & G.R. 77 (1966)

SC

Facts

The heirs of Bob Roberts (plaintiffs) owned an undivided one-half interest in a tract of land. Estella Todd (defendant) and James Craven owned the other one-half interest. Todd and Craven each leased their rights to the oil and gas in the land to The Superior Oil Company (Superior) (defendant). Each lease contained a pooling clause stating that Superior would pool the leased interest with nearby lands. Superior offered to enter into a similar lease with the plaintiffs, but the plaintiffs did not accept. The plaintiffs also did not sign the pooling agreement that Superior signed with nearby interest owners. Production was obtained from the pooled unit, but not the land owned by the plaintiffs, Todd, and Craven. The plaintiffs brought suit against Todd and Superior, seeking to recover based on the production on the pooled unit. The plaintiffs argued that the pooling agreement, which included land of which they owned half, effectively made them cotenants with Todd and Craven. The trial court found in favor of the plaintiffs and awarded recovery. The court of civil appeals affirmed. The defendants appealed.

Rule of Law

Issue

Holding and Reasoning (Norvell, J.)

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