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PARKER v. TXO PRODUCTION CORP.

No. 13-85-366-CV.

716 S.W.2d 644 (1986)

Vernon C. PARKER, et al., Appellants, v. TXO PRODUCTION CORPORATION & Delhi Gas Pipeline Corp., Appellees.

Court of Appeals of Texas, Corpus Christi.

August 29, 1986.

Attorney(s) appearing for the Case

Charles E. Neal, Edward L. Atkinson, Amarillo, for appellants.

W.S. Barron, Jr., Dallas, for appellees.

Before NYE, C.J., and DORSEY and KENNEDY, JJ.

OPINION

DORSEY, Justice.

Two questions are raised in this appeal. First, did the operator of natural gas wells breach its implied covenant to market the gas, owed to royalty interest owners, by selling the gas to its wholly-owned subsidiary for a price effectively below market price? Second, did the operator improperly charge the royalty owners for their share of the cost of compressing the gas to increase production from the wells? The trial court denied...

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