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PETROLEUM SYNERGY v. OCCIDENTAL PERMIAN

No. 07-08-00376-CV.

331 S.W.3d 14 (2010)

The PETROLEUM SYNERGY GROUP, INC., Appellant, v. OCCIDENTAL PERMIAN, LTD., Appellee.

Court of Appeals of Texas, Amarillo, Panel D.

Rehearing En Banc Reconsideration Overruled November 12, 2010.

Attorney(s) appearing for the Case

Jason C. Nash , Donald E. Herrmann , Matthew D. Stayton , Kelly, Hart & Hallman, LLP, Fort Worth, TX, for Appellant.

John A. `Jad' Davis , Jacob M. Davidson , Davis Gerald & Cremer, Midland, W. Chris Boyer , Crenshaw Dupree & Milam, L.L.P., Lubbock, Deborah G. Hankinson , Ryan D. Clinton , Hankinson Levinger, LLP, Dallas, TX, for Appellee.

Before QUINN, C.J., and CAMPBELL and PIRTLE, JJ.

OPINION

JAMES T. CAMPBELL, Justice.

This is an oil drainage case. The Petroleum Synergy Group, Inc. (PSG) owns an overriding royalty interest in a lease in Lamb County operated by Occidental Permian, Ltd. (OPL). PSG filed suit against OPL alleging OPL breached the implied covenant to prevent substantial drainage of the leasehold. The jury did not find the occurrence of substantial drainage and the trial court rendered a take-nothing judgment in favor of...

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