Rogers v. Osborn

261 S.W.2d 311 (1953)

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Nature of the Case

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Facts

P and D were under an oil and gas lease. Before the primary term expired on September 21, 1947, Well No. 1 had been commenced on May 15. The derrick was torn down and drilling tools were removed on July 30th. From then until November 12th the well was subjected to 'periodic flowing'. After the flow ceased it would be shut in to accumulate more pressure. At first, this procedure was followed almost every day but it soon slowed down to once a week. All cutting of the new hole on Well No. 1 had been completed, all pipe cemented, and all flowing arrangements completed when the primary term expired on September 21st. There was never any production from the lease. Ps brought suit against Ds to declare the oil and gas lease terminated because Ds had not, within the primary term of the lease, brought in a producing well. Ds claim that under the 'drilling' or 'reworking operations' provided for the lease the lease was not terminated, and that a second well was completed by an oil producer, but upon which the drilling had commenced subsequent to their having received notice of the claim of Ps that the lease had terminated, continued the lease in effect so long 'as oil, gas or other minerals is produced from said land.' The trial court rendered judgment in favor of Ds, denying the termination of the lease and the overruling of Ps' motion for judgment notwithstanding the verdict of the jury. That judgment was affirmed. Ps appealed.