Condra v. Quinoco Petroleum, Inc.

Are royalty owners to be left entirely to the “good will” of the gas producers despite the terms of their agreements and the implied covenants arising thereunder? The majority opinion relies upon this court’s en banc decision in TransAmerican Natural Gas Corp. v. Finkelstein, 933 S.W.2d 591 (Tex.App.—San Antonio 1996, writ requested) as support for its holding that no royalties are owed in the instant case. Although writ has been requested in TransAmerican, no action has been taken to date by the Texas Supreme Court. Because the majority opinion refuses to recognize the cogent distinction…