Statute of Frauds: Elements

摘要

Starting in 1978, the Trusts and the Griffins execute a number of letter agreements whereby the Griffins and others agree to participate in the drilling of certain gas wells in East Texas. The agreements have attached to them a form joint operating agreement that is to govern the relationship of the parties. Many of the wells produce gas over an extended period of time. Disputes arise between the parties relating to the Trusts' operation of the wells and the Griffins' share of an $11,000,000.00 settlement of a take or pay claim by the Trusts relating to a number of wells that were subject to the various agreements. An agreement between the participants requires them to share in the litigation expenses relating to the take or pay case. The agreement requires the Trusts to send out monthly bills and requires payments within 30 days after the bill is received. The agreement does not specify what happens if monthly bills are not sent out. The Trusts do hot send out bills on a regular, monthly basis and after a twenty-month hiatus send out a bill which the Griffins refuse to pay. The trial court finds that the letter agreements are valid and otherwise grants the Griffins most of the relief they sought. Held: affirmed as modified. The Court of Appeals agrees with the trial court and finds that the agreements are enforceable against the Trusts' claim that they violate the Statute of Frauds.