Freeman v. Magnolia Petroleum Co

In Freeman v. Magnolia Petroleum Co., 141 Tex. 274, 171 S.W.2d 339 (1943), the lease at issue provided in pertinent part, "while said shut-in royalty is so paid, said well shall be held to be a producing well." Id. at 340. The Supreme Court held that this was a condition of the lease and, because the lessees failed to make a timely shut-in royalty payment, "the lease lapsed as a matter of law when they so failed." Id. at 342.