Breaux v. Apache Oil Corporation
Louisiana Court of Appeal
240 So. 2d 588 (La. Ct. App. 1970)
Breaux (plaintiff) leased oil and gas rights to Apache Oil (defendant) under a lease that would terminate on March 18, 1967 unless Apache had commenced drilling operations, or begun paying rent, by that date. Apache started building an access road to the planned well site on March 16 or 17, finished the road on the deadline itself, and disputed with Breaux exactly when it moved drilling equipment on site, but actual physical drilling didn't begin until March 22. Breaux sued to cancel the lease, arguing Apache missed the deadline; the trial court granted Apache summary judgment, and Breaux appealed.
Whether commencing operations of a well, for purposes of an unless oil and gas lease, requires actual physical drilling by the lease deadline.