Amoco Production Company v. Braslau
Supreme Court of Texas
561 S.W.2d 805 (Tex. 1978)
Relevant factsFree
After Amoco's (plaintiff) term royalty passed its 15-year primary term, the operator's well broke down during recompletion work in a different sand zone, causing a 103-day cessation of production; the operator immediately drilled a new well in yet another zone on the same leased land, which quickly began producing, and Amoco sued for a declaration its term royalty hadn't expired despite the interruption.
IssueFree
Whether, under oil and gas law, mechanical difficulties resulting in a temporary cessation of production will terminate a determinable term royalty if a new well is promptly drilled, even if the new well is drilled in a different zone from where the original well was producing.
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