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Maguire Oil Co. v. City of Houston

Discounted cash flow analysis provides some proof of market value in the absence of comparable sales evidence.

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OPINION

Maguire Oil Company *fn1 (Maguire) appeals the summary judgment granted in favor of the City of Houston. Maguire sued the City alleging damages when the City revoked a permit authorizing Maguire to drill a gas well near Lake Houston, a freshwater reservoir and the City’s main source of drinking water.

In its petition, Maguire claimed it applied for and received a permit from the City on May 7, 1991. The City ratified and modified the permit on May 22, 1991, and extended the permit on August 5,1991. The location of the well was on the shore of Lake Houston, approximately 300 feet from the lake.

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