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David Ohrt, Sandra Hester, and Judy Sinast v. Union Gas Corporation
398 S.W.3d 315
| Tex. App. | 2012
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Background

  • 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)
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Case Details

Case Name: David Ohrt, Sandra Hester, and Judy Sinast v. Union Gas Corporation
Court Name: Court of Appeals of Texas
Date Published: Aug 30, 2012
Citation: 398 S.W.3d 315
Docket Number: 13-05-00621-CV
Court Abbreviation: Tex. App.