Seagull Energy E & P, Inc. v. Eland Energy, Inc.

In this case we must determine whether the sale of an oñ and gas working interest, which was subject to an operating agreement, 1 released the seller from any farther 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 its working interest, the seller remains hable under the operating agreement, unless released by the operator or the terms of the agreement. Because neither the operating agreement nor the operator expressly released the seller from its…