D Oil, Inc. v. Brungardt

Elliott, J.:

Alfred J. Dreiling and D Oil, Inc., (D Oil) appeal the trial court’s ruling that Golden Belt Savings and Loan Association’s (Golden Belt) properly filed mortgage had priority over D Oil’s properly perfected oil and gas lien.

We reverse.

The facts are not in dispute. Dreiling individually and later as D Oil operated an oil and gas lease in Ellis County since 1978, pursuant to an oral agreement with the working interest holders. Ed Brungardt owned a working interest in the lease and in 1983 mortgaged his interest to Golden Belt. At the time the mortgage was properly recorded,…