Fox v. Nally

Elizabeth W. Danielson, Judge.

The appellants, Lawrence and Betty Fox, executed an oil and gas lease to Diamond Shamrock Corporation, which was subsequently assigned to the appellee/cross-appellant, Noel Nally. The granting clause in the lease gave the appellee the right, among other things, to drill a well and lay pipelines. The appellants and the appellee also executed a “Surface Use Agreement and Damage Release” for the sum of $3,000. .

Pursuant to the lease the appellee drilled a natural gas well and laid a pipeline from the well across the appellants’ property. The appellants then refused…