JIM WELLS COUNTY v. EL PASO PRODUCTION OIL

Nos. 01-04-01277-CV to 01-04-01287-CV; 01-04-01326-CV to 01-04-01333-CV.

189 S.W.3d 861 (2006)

JIM WELLS COUNTY and Premont Independent School District, Appellants, v. EL PASO PRODUCTION OIL AND GAS COMPANY; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees and Brooks County and Brooks County ISD, Appellants, v. El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Brooks County and Brooks Independent School District, Appellants v. Texaco E & P, Inc. and Shell Western E & P, Inc., Appellees, and Duval County; San Diego Independent School District; and Freer Independent School District, Appellants, v. Shell Western E & P, Inc., Appellee, and Duval County; San Diego Independent School District; and Freer Independent School District, Appellants, v. Conoco, Inc.; Continental Oil Company; Brandywine Industrial Gas; Conoco-Phillips Company; Phillips Petroleum Company; El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Jim Hogg County and Jim Hogg Independent School District, Appellants, v. Chevron U.S.A., Inc. a/k/a Chevron Products Company, Appellee, and Jim Wells County and Premont Independent School District, Appellants, v. Anadarko Petroleum Corporation and Anadarko Holding Company f/k/a Union Pacific Minerals, Inc. and f/k/a Union Pacific Resources Group, Inc., Appellees, and Webb County, Appellant, v. Chevron U.S.A., Inc. a/k/a Chevron Products Company; Texaco E & P, Inc.; and Four Star Oil & Gas Company, Appellees, and Webb County, Appellant, v. Conoco Inc.; Continental Oil Company; Brandywine Industrial Gas; Conoco-Phillips Company; Phillips Petroleum Company; El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Zapata County and Zapata Independent School District, Appellants, v. Conoco Inc.; Continental Oil Company; Brandywine Industrial Gas; Conoco-Phillips Company; Phillips Petroleum Company; El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Zapata County and Zapata Independent School District, Appellants, v. Chevron U.S.A., Inc. a/k/a Chevron Products Company; Shell Western E & P, Inc.; Anadarko Petroleum Corporation; and Anadarko Holding Company f/k/a Union Pacific Minerals, Inc. and f/k/a Union Pacific Resources Group, Inc., Appellees, and Hidalgo County, Texas, Appellant, v. Texaco, Inc., a surviving subsidiary of merger between Texaco, Inc. and Chevron Inc.; TotalFinaElf E & P USA Inc.; Kerr-McGee Oil & Gas Onshore, L.L.C.; Shell Western E & P, Inc.; and El Paso Production Oil & Gas Company, Appellees, and Edinburg Consolidated Independent School District, Appellant, v. Fina Oil and Chemical Company; Atofina Petrochemicals, Inc.; Fina, Inc.; TotalFinaElf Gas & Power North America, Inc.; Fina Natural Gas Company; Mokeen Oil Company; Conoco, Inc.; Continental Oil Company; Brandywine Industrial Gas, Inc.; Shell Oil Company; Shell Western E & P, Inc.; Shell Gas Trading Company; El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; IBC Petroleum, Inc.; Texas Independent Exploration, Inc.; Sun Operating Limited Partnership; Oryx Energy Company; ANR Production Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; El Paso Merchant Energy Company; American Exploration Company; Contract Energy, L.L.C.; EOG Resources, Inc.; Arco Oil & Gas Co.; Cody Energy LLC; Samedan Oil Corporation; Cabot Oil & Gas Corporation; Vastar Resources, Inc.; BP America Production Company; Kerr-McGee Oil & Gas Onshore LLC; Mobil Producing TX. & N.M. Inc.; Chevron U.S.A. Inc.; Texaco, Inc.; and Socony Mobil Company, Inc., Appellees, and McAllen Independent School District, Appellant, v. Fina Oil and Chemical Company; Altofina Petrochemicals, Inc.; Fina, Inc.; TotalFinaElf Gas & Power North America, Inc.; Fina Natural Gas Company; TotalFinaElf E & P USA, Inc.; Total E & P USA, Inc.; Denovo Oil & Gas, Inc.; and Virtex Petroleum Company, Inc., Appellees, and Kleberg County and Kingsville Independent School District, Appellants, v. Atofina Petrochemicals, Inc. f/k/a Fina Oil & Chemical Co.; Total Fina Elf Holdings USA, Inc.; Anadarko Petroleum Corporation; and Anadarko Holding Company f/k/a Union Pacific Minerals, Inc. and f/k/a Union Pacific Resources Group, Inc., Appellees, and Kleberg County and Kingsville Independent School District, Appellants, v. El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Willacy County, Appellant, v. El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees, and Edcouch-Elsa Independent School District; La Villa Independent School District; Progresso Independent School District; Weslaco Independent School District; City of La Joya; City of Edinburg; City of Mercedes; and City of Penitas, Appellants, v. Chevron U.S.A., Inc. a/k/a Chevron Products Company; Texaco E & P, Inc.; Shell Western E & P, Inc.; Atofina Petrochemicals, Inc. f/k/a Fina Oil & Chemical Co.; and Total Fina Elf Holdings USA, Inc., Appellees, and Kenedy County, Appellant, v. El Paso Production Oil and Gas Company; El Paso Production Oil and Gas USA, L.P.; El Paso CGP Company; Coastal Oil and Gas Corporation; The Coastal Corporation; Coastal States Trading, Inc.; Coastal States Crude Gathering Company; Coastal Gas Marketing Company; Coastal Limited Ventures, Inc.; and El Paso Merchant Energy Company, Appellees.

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

January 26, 2006.


Attorney(s) appearing for the Case

John F. Carroll, Jon Christian Amberson, Jon Christian Amberson, P.C., San Antonio, Juan Rocha, Rolando Cantu, Rolando Cantu & Associates, Edinburg, for appellants.

Lynne Liberato, Hayes & Boone, L.L.P., Jasper G. Taylor III, Daniel M. McClure, Katherine Mackillop, Peter A. Stokes, Fulbright & Jaworski L.L.P., Houston, W. Wendell Hall, Fulbright & Jaworski L.L.P., San Antonio, Peter A. Lowy, Houston, William W. Kilgarlin, William Ikard, Laurie Ratliff, Ikard Wynne & Ratliff L.L.P., Austin, for appellees.

Panel consists of Justices TAFT, JENNINGS, and HANKS.


OPINION

GEORGE C. HANKS, JR., Justice.

The appellant counties and school districts (collectively referred to as "the Taxing Units") filed claims in the trial courts for fraud and related causes of action against the appellees (collectively referred to as "the Oil Companies") arising out of an alleged scheme to undervalue oil and gas reserves for ad valorem tax purposes.1 The trial court granted the Oil Companies' plea to the...

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