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Blocker Exploration Co. v. Frontier Exploration Inc.

Colorado Supreme Court
740 P.2d 983 (1987)

Written by Sean Carroll, JD

Facts

Great Lakes Niagara (GLN) assigned its rights in oil and gas leases to Lewis. The agreement between the two parties stated that Lewis was the operator of the leasehold. Lewis contracted with Frontier Exploration Inc. (Frontier) (plaintiff) to undertake seismic operations on the land subject to the leases. Lewis assigned a portion of its interest in the leases to Blocker Exploration Co. (Blocker) (defendant). In exchange, Blocker paid for a portion of the seismic operations. Under the agreement, Blocker had the right to receive all information from the seismic operations, and other data from the site. Blocker also had a “go-no-go” right, meaning that it had the right to choose to participate in each phase of development of the land before it began. Lewis filed for bankruptcy and was unable to pay Frontier in full. Frontier brought suit against Blocker, claiming that a mining partnership existed between Lewis and Blocker, rendering Blocker liable for Lewis’s remaining payments to Frontier. The trial court granted Blocker summary judgment. The court of appeals affirmed. Frontier appealed.

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Holding and Reasoning (Vollack, J.)

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