Texas Oil & Gas Corporation, Petitioners-Respondents v. Juan M. Vela, Respondents-Petitioners

Summary

The Texas Supreme Court set aside the Court of Civil Appeals decision, severed the parties' claims as moot, reversed the denial of drainage damages, and affirmed reformed royalty awards to Nordan and Gaines. It held that market price for royalty is the prevailing price at the well at the time gas is sold, that equitable estoppel does not bar royalty recovery, that lease notice provisions do not preclude damages suits, and that the trial court correctly denied a late jury demand.