TX STATETexas Court of Appeals, 7th District (Amarillo)
2000

Natural Gas Pipeline Co. of America v. Pool

30 S.W.3d 618Texas Court of Appeals, 7th District (Amarillo) • Decided 2000Modified

HOLDING

A gas lease automatically ended when production stopped, as stated in the lease's habendum clause. The company operating the lease continued using the land after termination without permission. The court ruled this was bad faith trespass and ordered the company to pay damages, attorney's fees, and return the equipment. For subcontractors, this shows that lease terms control when work rights end, and continuing work after termination can trigger liability.

KEY FINDINGS

Lien Rights

Check your contract's termination clause carefully—it may end automatically without notice when certain conditions occur (like cessation of work or production)

Dispute Resolution

Continuing work or using property after a contract ends can expose you to trespass liability and bad faith damages, even if you claim the owner allowed it

FULL COURT OPINION