Albert v Dunlap Exploration, 2015 Tex. App. LEXIS 1402 (Tex.App.B Eastland, 2015)

This case involved the application of a horizontal Pugh clause. Although the facts are somewhat more complicated, the court held that the Pugh clause was modified by a unit agreement executed by the lessors that provided for the pooling of all of the leases described as to all depths covered by said leases@ and that, since production occurred prior to the end of the primary term, the entire lease was pooled and the horizontal Pugh clause did not come into effect as to the pooled acreage.