Texas Wesleyan Law Review
Publication Date
3-1-1999
Document Type
Comment
Abstract
Part I of this Comment defines the cooperative venture rule and the plain meaning rule as they are used by courts to interpret oil and gas leases. Part II, reviews and analyzes the cases adopting the cooperative venture rule in our neighboring states of Oklahoma, Louisiana and Arkansas, as well as some of the Texas cases where the plain meaning rule has been applied. Part III, discusses the concept of constructive production and how it should be incorporated into the cooperative venture rule. As part of that discussion, this Comment addresses some of the activities of an oil and gas company which would appear to fall outside of the definition of constructive production and, therefore, the cooperative venture. The Conclusion, summarizes the argument in favor of adopting the cooperative venture rule in Texas. The covenants found to be implicit in an oil and gas lease are beyond the scope of this comment; however, some of those covenants have clearly influenced the courts that have adopted the cooperative venture rule.
DOI
10.37419/TWLR.V5.I2.5
First Page
253
Last Page
274
Recommended Citation
Douglas R. Johnson,
The Cooperative Venture: Revisiting the Relationship Between the Royalty and Working Interest in Texas,
5
Tex. Wesleyan L. Rev.
253
(1999).
Available at:
https://doi.org/10.37419/TWLR.V5.I2.5