Court Dismisses Lease Forfeiture Claim after Excluding Disputed 'Demand' Letter

FORT WORTH, Texas - Landowners failed to persuade a Texas court to terminate 10 oil and gas leases for failure to meet demands for allegedly undisputed payments while the landowners pursue a lawsuit over disputed royalties. Vinson Minerals Ltd., et al. v. XTO Energy Inc., No. 02-08-00453-CV (Texas Ct. of App., 2nd Dist.).

Texas' Second District Court of Appeals on Dec. 16 affirmed a trial court holding that Vinson Minerals Ltd. failed to provide proper written notice of the claim to leaseholder XTO Energy Inc. as required by the leases.

Vinson Minerals, Johnny Vinson and Chisholm 2000 L.P. negotiated oil …