HOLBEIN v. AUSTRAL OIL CO., INC.

No. 77-2123.

609 F.2d 206 (1980)

Alfred Ray HOLBEIN and Robert J. Holbein, Trustees of the Holbein Trust, Plaintiffs-Appellants, v. AUSTRAL OIL COMPANY, INC., Defendant, Chevron Oil Company, Defendant-Appellee.

United States Court of Appeals, Fifth Circuit.

January 7, 1980.


Attorney(s) appearing for the Case

Carlos Castillon, Richard N. Hansen, Laredo, Tex., for plaintiffs-appellants.

Stan L. McLelland, Lee L. Kaplan, Houston, Tex., for defendant-appellee.

Joseph A. Cohn, Jr., Corpus Christi, Tex., for South Texas Natural Gas.

Bernard W. Schrader, Coastal States Gas. Corp., Houston, Tex., for other interested parties.

Before BROWN, TJOFLAT and GARZA, Circuit Judges.


PER CURIAM:

In 1957 the Appellants, trustees for the Holbein Trust, executed a mineral lease to Appellee's predecessor in interest, Standard Oil Company of Texas (Standard). The lease provided for royalties to the lessor of one-eighth of the "amount realized" by the lessee from the sale of gas. In 1961 Standard executed a gas purchase contract with South Texas Natural Gas Gathering Company (South Texas) under which Standard obligated itself to pay all royalty payments...

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