Supreme Court of Texas
261 S.W.2d 311 (Tex. 1953)
An oil and gas lease provided that it would terminate on September 21, 1947, unless: (1) prior to the discovery of gas, the lessees drilled a dry hole and, within 60 days of such drilling, began additional drilling or reworking operations; (2) after discovery of gas, production ceased, and the lessees within 60 days of such ceasing of production, began additional drilling or reworking operations; or (3) upon the expiration of the primary term, there was no production, but the lessees were engaged in drilling or reworking operations. The lessees found gas in Well 1, but were not able to produce it. Beginning in July 1947, the lessees engaged in “periodic flowing” of the well, and continued this practice until November 29, 1947. During this time, but after September 21, the lessees dug Well 2, which was able to produce gas. The lessor brought suit against the lessees, seeking cancellation of the lease for failure to meet one of the extension requirements. The trial court found in favor of the lessees, holding that the combination of reworking Well 1 and the digging and production from Well 2 during such reworking extended the lease. The court of appeals affirmed. The lessor appealed.
Rule of Law
Holding and Reasoning (Wilson, J.)
Dissent (Culver, J.)
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