A “carried interest” in an oil and gas lease is a fractional interest that is free of some or all costs of exploring, drilling, and completing the well.
Oil and Gas Working Interest Defined
The oil and gas working interest is the right to the mineral interest granted by an oil and gas lease, so called because the lessee acquires the right to work on the leased property, search, develop, and produce oil and
Oil and Gas Royalty Defined
An oil and gas royalty is a share of the product or profit from real property, reserved by the grantor of a mineral lease in exchange for the lessee’s right to mine or drill on the land. Black’s Law Dictionary
Rule of Capture
That rule of capture gives a mineral rights owner title to the oil and gas produced from a lawful well bottomed on the property, even if the oil and gas flowed to the well from beneath another owner’s tract. The
No Evidence Motion for Summary Judgment
Under Rule 166(a)(i), Texas Rules of Civil Procedure, after adequate time for discovery a no-evidence summary judgment motion may be urged on the ground that there is no evidence of one or more essential elements of a claim or defense
Unilateral Mistake
To establish the existence of a unilateral mistake, a party must show (1) the mistake was of so great consequence that to enforce the contract as made would be unconscionable; (2) the mistake relates to a material feature of the
Objective Intent and Harmonization
In construing a written contract, the court’s primary concern is to ascertain the parties’ true intentions as expressed in the instrument. Forbau v. Aetna Life Ins. Co., 876 S.W.2d 132, 133 (Tex. 1994); Coker v. Coker, 650 S.W.2d 391, 393
Mutual Mistake
A mutual mistake of fact occurs when the parties to a contract have a common intention, but the written contract erroneously reflects the intention due to a mistake on the part of both parties. Lacy v. Ticor Title Ins. Co.,
Integration and Parol Evidence
Absent pleading and proof of ambiguity, fraud, accident or mistake, a written instrument presumes that all prior agreements of the parties relating to the transaction have been merged into the written instrument and, therefore, that it is fully integrated. Weinacht
Breach of Contract
In a claim for breach of contract, a complaining party must show: (1) the parties entered into a contract; (2) the contract created duties; (3) one party breached the duties; and (4) another party sustained damages. Shelton Ins. Agency v.