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TEXAS OIL & GAS CORPORATION v. VELA

No. A-11666.

429 S.W.2d 866 (1968)

TEXAS OIL & GAS CORPORATION et al., Petitioners-Respondents, v. Juan M. VELA et al., Respondents-Petitioners.

Supreme Court of Texas.

On Rehearing July 2, 1968.

Rehearing Denied July 24, 1968.

Attorney(s) appearing for the Case

Geary, Brice & Lewis, W. S. Barron, Jr., Dallas, G. C. Mann, Laredo, Robert R. Barton, Kerrville, for Texas Oil and Gas Corp. and others.

Meer, Chandler & Carlton. Dean Carlton, Dallas, for Delhi-Taylor Oil Corp.

Turner, Hitchins, McInerney, Webb & Hartnett, James J. Hartnett, Dallas, for Texas Oil and Gas and Delhi-Taylor.

Fansler & Fansler, C. N. Fansler, Jr., Laredo, for Hannah D. Gaines et vir.

Mann, Cronfel & Mann, John E. Mann, Laredo, Bobbitt, Brite, Bobbitt & Allen, Robert Lee Bobbitt, Jr., San Antonio, for Juan M. Vela and others.

W. Pat Camp, San Antonio, for L. A. Nordan.

WALKER, Justice.

This case involves an oil and gas lease executed in 1933 and covering 1,500 acres of land in Zapata County. Under its terms the lessee is obligated to "pay to lessor, as royalty for gas from each well where gas only is found, while the same is being sold or used off of the premises, one-eighth of the market price at the wells of the amount so sold or used." Gas has been produced and sold from the leased premises since 1935. In that year the owners...

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