Amoco Production Co. v. Alexander
Supreme Court of Texas
622 S.W.2d 563 (Tex. 1981)
Relevant factsFree
Amoco (defendant) held leases on both the disadvantaged lower portion and the advantaged higher portion of a sloped water-drive oil field; when the Alexanders' (plaintiffs) lower lease watered out after Amoco continued producing heavily on its higher leases without seeking regulatory exceptions to drill replacement wells, the Alexanders sued for breach of the implied covenant against drainage and won exemplary damages at trial.
IssueFree
Whether the implied covenant to protect against drainage includes a duty to protect against field-wide drainage.