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GAVENDA v. STRATA ENERGY, INC.

No. C-3894.

705 S.W.2d 690 (1986)

John David GAVENDA et al, Petitioners, v. STRATA ENERGY, INC. et al, Respondents.

Supreme Court of Texas.

Rehearing Denied April 2, 1986.

Attorney(s) appearing for the Case

Mike Hatchell, Ramey Firm, Sam B. Cobb, Jr., Sam B. Cobb, Jr. & Associates, P.C., Tyler, for petitioners.

K. Ray Campbell, Campbell, Athey & Zukowski, Maurice Bresenhan, Jr., Houston, for respondents.

SPEARS, Justice.

This oil and gas case concerns the effect of division and transfer orders. The issue is whether division and transfer orders are binding until revoked when an operator who prepares erroneous orders underpays royalty owners, retaining part of the proceeds for itself. The trial court held the orders were binding until revoked and rendered summary judgment for the operators. The court of appeals affirmed. 683 S.W.2d 859

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