Ricky Drake v. Waco Oil & Gas Company, Inc.

Case Number:
Case Date:
Case Issue:

The issue before the Court is a Certified Question regarding the rights to accounting of a non-leasing co-tenant to mineral rights.

QUESTION: Where an oil and gas producer entered a lease for oil and gas production with one of two co-tenants, unaware of the ownership interest of the non-leasing co-tenant, produces gas pursuant to the lease and is then called upon by the non-leasing co-tenant to account, in determining the amount to which the non-leasing co-tenant is entitled is the correct measure the value of the gas produced less reasonable costs of production or is the correct measure that portion of the royalty to which the non-leasing tenant would have been entitled had each tenant executed the lease. ANSWER: The correct measure of the accounting is the amount of royalty due pursuant to the lease.