Southland Royalty Company, Petitioners. v. Pan American Petroleum Corporation, Respondents

Summary

The Texas Supreme Court reversed the lower courts and held that the phrase “other minerals” in the lease includes gas and that the flat‑rate royalty provisions apply only to gas used by the lessee off the premises, not to gas sold, so the lessees must pay a percentage royalty on gas sold and only the flat‑rate royalty on gas they themselves use off the premises. The decision was contested by multiple dissenting and concurring opinions.