Quimbee logo
DMCA.com Protection Status
From our private database of 18,800+ case briefs...

McDowell v. PG & E Resources Co.

Court of Appeal of Louisiana
658 So. 2d 779 (La. Ct. App. 1995)


PG & E Resources Company (Resources) (defendant) leased oil and gas rights from Howard McDowell (plaintiff). Resources combined “wet gas” from one well with “dry gas” from another well and sold the combination to United Gas Pipeline Company (United). When the dry-gas well stopped producing, United refused to accept only the wet gas. As a result, Resources invoked a shut-in royalty clause in the lease and began searching for a market for the wet gas. Resources asked United several times to make an exception and accept the wet gas. Resources also reworked the dry gas, attempting to restart production. Additionally, Resources contacted two other gas transporters in an attempt to sell the wet gas. One of these companies, Tex/Con, was interested in purchasing the gas, but Resources held off on entering into an agreement while waiting to see if the reworking of the dry-gas well was successful. When the rework failed, Resources entered into a contract with Tex/Con. The contract necessitated Resources constructing a brand new pipeline. Once the pipeline was constructed, one year after United stopped taking gas, Resources reopened the wet-gas well. McDowell brought suit against Resources to cancel the lease based on a 90-day cessation-of-production clause in the lease and alleged breach of the implied covenant to market. McDowell had not given notice to Resources that he was alleging a breach. The trial court cancelled the lease after determining that Resources had breached the implied covenant to market. Resources appealed.

Rule of Law


Holding and Reasoning (Hightower, J.)

Dissent (Brown, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 498,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 498,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial