David Ohrt, Sandra Hester, and Judy Sinast v. Union Gas Corporation
398 S.W.3d 315
| Tex. App. | 2012Background
- Oil and gas leases authorize pooling; Union Gas pooled Ohrt/Albrecht and Ohrt/Heinold units in 2000–2001.
- Unit designations were filed Jan 15, 2001 (Ohrt-Heinold) and Oct 10, 2000 (Ohrt-Albrecht) with effective dates tied to first production.
- Royalties were paid to Ohrts based on unit decimals; Ohrts later sought 3/16 royalties retroactive to first production.
- Designation and division orders stated effective date as the date of first production, with Ohrts signing division orders accepting payments.
- Jury found no bad-faith pooling, but found Ohrts ratified/waived pre-pooling royalties and depth-limit waivers; trial court entered judgment consistent with verdict.
- This appeal challenges pre-pooling royalties, depth limitations, attorney’s fees, and joinder/participation of related parties.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Pre-pooling royalties—waiver/ratification estoppel | Ohrt argues entitlement to 3/16 royalties prior to Jan 15, 2001. | Union/Gas asserts waiver/estoppel prevents full pre-pooling recovery. | Evidence supports the jury on waiver/ratification; pre-pooling royalties foregone. |
| Depth limitation validity in pooling | Unit exceeded 320 acres + 10% and depth limit; pooling invalid. | Amendments let pooling include additional acreage; no breach. | Jury findings upheld; depth-limit defenses sustained. |
| Attorneys’ fees recovery | Section 38/Chapter 91 fees should be recoverable for breach claims. | No prevailing breach claim; fees not recoverable. | No attorney’s fees awarded; no prevailing contract claim. |
| Joinder of McAdams/Chilcoat as third-party defendants; trial impact | Joinder improper after settlements; prejudicial to Ohrts. | Joinder proper; interests directly affected; settlements did not bar participation. | Court did not abuse discretion; joinder and trial participation permissible. |
Key Cases Cited
- Tittizer v. Union Gas Corp., 171 S.W.3d 857 (Tex. 2005) (pooling effective only on recordation; retroactive designations invalid)
- Gisler v. Union Gas Corp., 129 S.W.3d 145 (Tex. App.—Corpus Christi 2003) (cannot modify extant contract rights by unilateral unit designation)
- City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standard for legal sufficiency review in appellate courts; weighing evidence)
- Amoco Prod. Co. v. Alexander, 622 S.W.2d 563 (Tex. 1981) (reasonable prudent operator; conflicts with multiple lessees in field)
- Whitley v. United States Steel Corp., 636 S.W.2d 465 (Tex. App.—Corpus Christi 1982) (duty to act as prudent operator; independent of other field-wide considerations)
