(Chief Justice Jefferson not sitting) 09-0306 Betty Yvon Lesley, et al. v. Texas Veterans Land Board, et al. from Erath County and the 11th District Court of Appeals, Eastland For petitioners: Chris Aycock and Charles Tighe, Midland For respondent: Bluegreen Southwest One, Laura H. Burney, San Antonio For respondents lot owners: Stephen E. Haynes, Brownwood The issue is whether a residential developer holding executive mineral rights breached its duty to other mineral interest-holders by failing to lease oil and gas rights or by using restrictive covenants to prevent the mineral interests' development. In this action, arising after the Barnett Shale exploration and development west of Fort Worth, lesser mineral interest-holders sued the developer and lot owners (including the Veterans Land Board) to declare as unenforceable covenants prohibiting oil-and-gas drilling in a ranchette community. Non-executive interest-holders also contend the developer's refusal to lease the mineral rights breached a duty to lease owed to lesser mineral interest-holders. The trial court found for the non-executive interest-holders. But the appeals court held the executive mineral interest-holder only owed lesser interest-holders a duty against self-dealing if it decided to lease mineral rights. The court of appeals also reversed the trial court's ruling that the Veterans Land Board did not have sovereign immunity because the interest-holders sought damages. This advisory serves only as an abbreviated guide to oral argument. Summaries are prepared by the Court's staff attorney for public information and reflect his judgment alone on facts and legal issues and in no way represent the Court's opinion about case merits. Texas Supreme Court advisory Contact: Osler McCarthy, Staff Attorney for Public Information (512) 463.1441 or email: osler.mccarthy@courts.state.tx.us