Oil and Gas Leases: Free Gas Clause Covenants: Covenants That Run With the Land

摘要

EOG is the lessee of a lease that provides: "Lessor shall have the privilege at his risk and expense of using gas from any gas well on said land for domestic use in the principal dwelling thereon out of any surplus gas not needed for operations hereunder." After many years of taking gas, EOG disputes the Walls right to do so. EOG claims that the Walls and several other defendants have converted their gas or have breached the contract to take so-called surplus gas. All of the defendants other than the Walls are not parties to this appeal. The trial court granted the Walls' motion for summary judgment based, in part, on a 1979 agreement between EOG's predecessor and the Walls allegedly giving them the right to tap in to the gathering line in order to obtain gas for personal, domestic use.