Rogers v. Osborn
Supreme Court of Texas
261 S.W.2d 311 (Tex. 1953)
An oil and gas lease would terminate unless the lessees, upon expiration of the primary term with no production, were actively engaged in drilling or reworking operations. The lessees found gas in Well 1 but couldn't produce it, and beginning in July 1947 engaged in periodic flowing of that well, extending the lease past its September 21 expiration date; during this reworking period they also drilled Well 2, which successfully produced gas, but the periodic flowing of Well 1 ceased on November 29, 1947. The lessor sued to cancel the lease for failing to meet the extension requirements. The trial court and court of appeals found the combination of reworking Well 1 and producing from Well 2 extended the lease; the lessor appealed.
Whether drilling of and production from a second well commenced after the primary term's expiration can support a further extension of a lease, where reworking operations on a first well extended the term but were ultimately unsuccessful.