HJSA No. 3, Limited Partnership v. Sundown Energy LP, SMC 2000 LP, PGP Holdings 1, LLC, Smith Allen Oil & Gas, LLP, Transmountain Exploration LLC, Fortune Natural Resources Corporation, Texas Heat of the Permian Basin, Inc., Whiting Oil and Gas Corporation, Eagle Rock Acquisition Partnership II, LP, Odyssey Royalties LLC, Horizon Royalties LLC, Pinecone Resources LLC, Brenda Dorman Faught, and Lena Renee Brigman ( 2019 )

COURT OF APPEALS
EIGHTH DISTRICT OF TEXAS
EL PASO, TEXAS
HJSA NO. 3, LIMITED PARTNERSHIP, §
No. 08-18-00113-CV
Appellant, §
Appeal from the
v. §
143rd District Court
SUNDOWN ENERGY LP, SMC 2000 LP, §
PGP HOLDINGS 1, LLC, SMITH of Ward County, Texas
ALLEN OIL & GAS, LLP, §
TRANSMOUNTAIN EXPLORATION (TC# 16-05-23886-CVW)
LLC, FORTUNE NATURAL §
RESOURCES CORPORATION, TEXAS
HEAT OF THE PERMIAN BASIN, INC., §
WHITING OIL AND GAS
CORPORATION, EAGLE ROCK §
ACQUISITION PARTNERSHIP II, LP,
ODYSSEY ROYALTIES, LLC, §
HORIZON ROYALTIES LLC,
PINECONE RESOURCES LLC, §
BRENDA DORMAN FAUGHT, and
LENA RENEE BRIGMAN, §
Appellees. §
JUDGMENT
The Court has considered this cause on the record and concludes there was error in that
part of the judgment granting partial summary judgment for Appellees and denying Appellant’s
cross motion for partial summary judgment. We therefore reverse that part of the judgment,
render judgment stating that under the unambiguous terms of lease, Sundown was required to
engage in a continuous development program to maintain the lease under Paragraph 7(b), and
that program required the spudding in of a continuous development well within 120 days of
completion or abandonment of a prior well; and remand to the trial court for further proceedings
in accordance with this Court’s opinion.
We conclude there was no error in that part of the judgment regarding the exclusion of
extrinsic evidence. We therefore affirm that part of the judgment. We further order that
Appellant and its sureties, if any, see TEX.R.APP.P. 43.5, and Appellees each pay one-half (1/2)
the costs of this appeal. This decision shall be certified below for observance.
IT IS SO ORDERED THIS 16TH DAY OF AUGUST, 2019.
YVONNE T. RODRIGUEZ, Justice
Before McClure, C.J., Rodriguez, and Palafox, JJ.
Palafox, J. (Dissenting)
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