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ESTATE OF GRIMES v. DORCHESTER GAS PRODUCING
Court of Appeals of Texas, Amarillo (1986) | 707 S.W.2d 196
TL;DR: Lessors sought to terminate an oil and gas lease, arguing a consolidated unit was invalid because a railroad right-of-way made it non-contiguous. The court held the lease valid, finding the parties' private pooling agreement controlled and was not invalidated by alleged violations of administrative regulations.
Legal Significance: This case establishes that the Texas Railroad Commission's regulatory authority does not alter private property rights. A valid pooling agreement will be enforced as written between parties, even if the resulting unit allegedly violates a Commission rule regarding contiguity.