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PUCKETT v. FIRST CITY NAT. BANK OF MIDLAND

No. 11-85-024-CV.

702 S.W.2d 232 (1985)

Gerald C. PUCKETT et al., Appellants, v. FIRST CITY NATIONAL BANK OF MIDLAND, Trustee et al., Appellees.

Court of Appeals of Texas, Eastland.

Rehearings Denied January 9 and February 6, 1986.

Attorney(s) appearing for the Case

Susan Richardson and Julia E. Vaughan, Cotton, Bledsoe, Tighe & Dawson, Midland, James T. Jeffus, Gulf Oil Corp., Houston, William R. Simcock, Walter J. Batla and Mary L. Brennan, Cox & Smith Inc., San Antonio, for appellants.

William B. Browder, Jr., Stubbeman, McRae, Sealy, Laughlin & Browder, Tom C. McCall and Randall Lundy, Lynch, Chappell, Allday & Alsup, Midland, Andrew L. Kerr, Green & McReynolds, San Antonio, for appellees.

Opinion

McCLOUD, Chief Justice.

The principal issue in this oil and gas case is which method of calculating royalties should be used in a "split stream" sale of gas produced from a voluntarily pooled unit. A split stream sale results when, as in the instant case, there is more than one owner of the working interest, and the individual working interest owners sell the gas allocated to them to different gas purchasers...

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