Humble Oil & Refining Co. v. Kishi
Texas Commission of Appeals
276 S.W. 190 (Tex. Com. App. 1925)
Kishi (plaintiff) leased Humble Oil & Refining Co. (Humble) (defendant) the exclusive right to drill for oil on his land for three years, but Humble found no oil; after its lease expired, Humble mistakenly but in good faith believed the lease remained valid and conducted a second round of drilling on Kishi's land, again finding no oil. Kishi sued for damages from this second, unauthorized drilling; the district court found for Kishi but awarded only nominal damages, and the court of appeals reversed in Humble's favor. Kishi appealed.
Whether the victim of a dry-hole trespass is entitled to damages in the amount of the market value the trespasser would have paid for the right to drill on the land.