Robbins v. Chevron U.S.A., Inc.

Edward Robbins (plaintiff) leased oil-and-gas rights to Chevron's predecessor, which drilled producing wells and signed a 20-year gas-purchase contract, later extended for 10 more years at a higher price. When a state price cap and then a market downturn hit, the buyer tried to renegotiate a lower price, Chevron refused, the buyer stopped paying, and Chevron -- unable to find another purchaser -- shut in the wells and paid Robbins shut-in royalties until reopening them roughly two years later. Robbins sued to cancel the lease, arguing Chevron breached the implied covenant to market by extending the contract and by leaving the wells shut in, and the trial court granted Robbins summary judgment and canceled the lease.