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Glassell Non-Operated Interests, Ltd. v. Enerquest Oil & Gas, LLC

United States District Court, S.D. Texas

December 28, 2017

Glassell Non-Operated Interests, Ltd., et al., Plaintiffs,
v.
Enerquest Oil & Gas, LLC, Defendant.

          OPINION ON SUMMARY JUDGMENT

          LYNN N. HUGHES, UNITED STATES DISTRICT JUDGE

         1. Introduction.

         A group of oil businesses agreed to develop prospects in an area cooperatively and to offer to share newly acquired interests in the area among themselves. One company acquired another's interests in the area but did not offer a share to the other participants. They sued, claiming that the acquirer had breached the agreement. The acquirer said that it did not breach the agreement and, even if it had, the agreement was not enforceable. The excluded parties will prevail.

         2. Facts.

         On September 9, 2011, these companies and people agreed to develop an area of mutual interest in the Dubose Field in the counties of DeWitt, Gonzales, and Karnes, Texas:

A. Enerquest Oil & Gas, LLC,
B. Yates Energy Corporation,
C. Jalapeno Corporation,
D. Curry Glassell,
E. The Alfred C. Glassell, III, 1957 Trust, now ACG3 Mineral Interests, Ltd., and
F. Glassell Non-Operated Interests, Ltd.

         In October of 2011, they amended the development agreement to include:

A. DKE Dyersdale, Inc.,
B. Cathy Dohnalek,
C. Walter Mengden, ...

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