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Breaux v. Apache Oil Corporation
Louisiana Third Circuit Court of Appeal
240 So.2d 589 (La. App. 3d Cir. 1970)
On March 18, 1966, Breaux (plaintiff) signed an oil and gas lease, leasing oil and gas rights on his property to the Apache Oil Corporation (Apache) (defendant). The lease provided that the lease would terminate on March 18, 1967, unless Apache started drilling operations on the property on or before that date, or Apache started paying rent to Breaux. On March 16 or 17, 1967, Apache started building a road to its planned well location on Breaux’s property. The road was completed on March 18. According to Apache, it moved drilling equipment to the site on March 18. According to Breaux, the first drilling equipment was not moved to the site until after March 18. Actual, physical drilling commenced on March 22. Breaux brought suit to cancel the lease, claiming that Apache did not commence drilling operations by the deadline. The trial court granted Apache summary judgment. Breaux appealed.
Rule of Law
Holding and Reasoning (Culpepper, J.)
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