MBank Abilene, N.A. v. Westwood Energy, Inc.

Opinion

McCLOUD, Chief Justice.

Westwood Energy, Inc. (formerly known as Wood Enterprises, Inc.) was operator of the Cunningham and the Duncan oil and gas leases in which Stroube Exploration, Inc. (SEI) was a nonoperating, working interest owner. The operating agreements 1 granted Westwood a first and preferred lien against the interest of each party to the operating agreement who failed to pay his share of the lease operating expenses. The agreements also expressly provided that the liens extended to the nonoperator’s interest in the oil and gas produced and the proceeds from the sale of such…