Brannon v. Gulf States Energy Corp.

DANIEL, Justice.

The question in this case is whether an oil and gas lease terminated for nonpayment of delay rentals where there was a late payment and acceptance by the lessor of a check designated as “lease rental.” More specifically, the issue is whether parol evidence was admissible to vary the written designation of the late payment from a “rental” to a bonus for a new lease.

Petitioners, M. J. Brannon, Jr., Otis Thompson, Patricia A. Elliott, and Henry W. Elliott III claim under a lease dated November 20,1973, from Clara Odessa Martin covering 202 acres in Coleman County. The first delay…