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SEAGULL ENERGY E & P, INC. v. ELAND ENERGY

No. 04-0662.

207 S.W.3d 342 (2006)

SEAGULL ENERGY E & P, INC., Petitioner, v. ELAND ENERGY, INC., Respondent.

Supreme Court of Texas.

Decided June 16, 2006.

Rehearing Denied December 29, 2006.

Attorney(s) appearing for the Case

William P. Maines, William J. Boyce, Fulbright & Jaworski L.L.P., Paul J. Franzetti, McDade Fogler, Houston, for petitioner.

Carl D. Rosenblum, John D. White, Jones Walker Waechter Poitevent Carrere & Denegre, The Woodlands, Alida C. Hainkel, Jones Walker Waechter Poitevent Carrere & Denegre, New Orleans, LA, J.D. Page, Doyle Restrepo Harwin & Robbins, Houston, for respondent.

Justice MEDINA delivered the opinion of the Court.

In this case we must determine whether the sale of an oil and gas working interest, which was subject to an operating agreement,1 released the seller from any further obligations to the operator. The court of appeals concluded that it did, reversing the trial court's judgment in favor of the operator. 135 S.W.3d 122. We conclude that, despite selling...

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