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JVA OPERATING CO. v. KAISER-FRANCIS OIL CO.

No. 11-99-00113-CV.

11 S.W.3d 504 (2000)

JVA OPERATING COMPANY et al., Appellants, v. KAISER-FRANCIS OIL COMPANY et al., Appellees.

Court of Appeals of Texas, Eastland.

Rehearing Overruled March 9, 2000.

Attorney(s) appearing for the Case

James W. Essman, Boldrick, Clifton, Holland & Essman, Midland, for appellants.

Rod E. Wetsel, Steakley & Wetsel, Sweetwater, for appellees.

Panel consists of: ARNOT, C.J., and WRIGHT, J., and McCALL, J.

OPINION

TERRY McCALL, Justice.

The controversy in this case involves the reservation of a production payment in a conveyance of leasehold interests. The trial court held that the production payment was to be paid from hydrocarbons produced from all formations conveyed with the leasehold interests. Because we find that the production payment is limited to hydrocarbons produced from the Canyon Sands formation, we reverse.

On March 20, 1969, appellees...

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