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MANDELL v. HAMMAN OIL AND REFINING CO.

No. 01-90-00950-CV.

822 S.W.2d 153 (1991)

David M. MANDELL, William M. Mandell, and Sam Field, Appellants, v. HAMMAN OIL AND REFINING COMPANY; Tennessee Gas Pipeline Company; Henry R. Hamman; Robert L. Baker; William V. Conover II; John Jennings; C.S. Wallace, Sr.; Arthur R. Stark, Jr.; John Wallace; Frank C. Nelms; John Sutton Allison; Lon Slaughter; Mrs. Wheeler Nazro; Frank C. Nelms, Independent Executor of the Estate of H.G. Nelms; Tenneco, Inc., Appellees.

Court of Appeals of Texas, Houston (1st Dist.).

Rehearing Denied December 19, 1991.

Attorney(s) appearing for the Case

Brantly Harris, Houston and James D. Smullen, Wimberley, for appellants.

Bertrand C. Moser, Jim Flegle, Laura B. Herring, Houston, and Marty A. Morris, Dallas, for appellees.

Before SAM BASS, DUNN and HUGHES, JJ.

OPINION

SAM BASS, Justice.

This appeal stems from a royalty suit to recover on a take or pay contract. The issue in this case is whether royalty owners are entitled to take or pay proceeds from a gas purchase contract. We hold that royalty owners are entitled to royalties for take or pay provisions, only if the parties expressly so provide in the lease.

Summary of Facts

In 1978, appellants and Hamman Oil and Refining Company ("Hamman")...

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