Texas Supreme Court
Coastal Oil & Gas Corp. and Coastal Oil & Gas USA, L.p., Petitioners v. Garza Energy Trust, Respondents
August 29, 200852 Tex. Sup. Ct. J. 55
Summary
The Texas Supreme Court held that the rule of capture bars recovery of damages for drainage caused by subsurface hydraulic fracturing, granting standing to mineral lessors with a reversionary interest but finding no evidence of recoverable loss. It also reversed the Court of Appeals, remanding for a new trial and finding the admission of a racially charged 1977 memorandum reversible error.