pjc-oil-and-gas-2022-lib

PJC 303.3

L ESSOR -L ESSEE I SSUES

S.W.2d at 347; Elliott , 553 S.W.2d at 227; (5) failure to consider geological factors in forming the pooled unit, Elliott , 553 S.W.2d at 227; (6) the absence of plans for addi tional development and pooling portions of leases with smaller royalties with a well site lease that has ample acreage to support the well, Underwood , 558 S.W.2d at 511– 12; and (7) exclusion of productive acreage located near the well and inclusion of unproductive acreage or of acreage which is probably not within the well’s drainage pattern, Elliott , 553 S.W.2d at 226 (refusal by Texas Railroad Commission to approve pooled acreage as a unit to be assigned to well is not, in itself, determinative of ques tion of good faith); Circle Dot Ranch, Inc. , 891 S.W.2d at 347. Remedies. If the jury finds the lessee has breached its duty to pool in good faith, the pooling is “canceled and held for naught” as to the lessor’s lease. Underwood , 558 S.W.2d at 511. The lessor also may be entitled to damages measured by the lessor’s undiluted royalty on the well’s production from the date of initial production through the date of trial, assuming that the well is located on and producing from the lessor’s lease.

90