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Oag v. Desert Gas Exploration Co.
Supreme Court of New York, Appellate Division
659 N.Y.S.2d 654 (App. Div. 1997)
Henry Oag and others (plaintiffs) owned a tract of land and signed an oil and gas lease thereon. The lease provided for payment of a shut-in royalty if there was no production. Desert Gas Exploration Co. (defendant) was assigned a portion of the oil and gas lease. There were several wells producing on the land subject to the lease. No wells, however, were producing on the portion assigned to the defendant. The plaintiffs received royalty payments from the production, but brought suit, seeking shut-in royalties from the defendant. The Supreme Court of New York granted summary judgment to the defendant. The plaintiffs appealed.
Rule of Law
Holding and Reasoning (Memorandum)
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