David Albert D/B/A David Albert Oil & Gas and ABX Oil & Gas, Inc. v. Dunlap Exploration, Inc.

OPINION

JOHN M. BAILEY, JUSTICE

This appeal concerns the applicability of a horizontal “Pugh” clause. See Sandefer Oil & Gas, Inc. v. Duhon, 961 F.2d 1207 (5th Cir.1992) (discussing the origin and purpose of a Pugh clause, including a horizontal Pugh clause). The trial court determined as a matter of law that the horizontal Pugh clause did not apply to the gas wells that are the subject of this appeal. We affirm.

Background Facts

Evelyn Petty Ferguson, individually and as independent executrix of the Estate of Bettie Petty, and Durwood Petty, individually and as trustee of the Bettie Petty…