Sun Operating Limited Partnership v. Holt

Elizabeth and Robert Holt (plaintiffs) leased oil and gas rights to Sun Operating Limited Partnership (Sun) (defendant) under leases whose habendum clauses allowed termination after 60 consecutive days of nonproduction, but whose force majeure clauses excused interruptions caused by fire, storm, war, transportation failures, or any other cause beyond Sun's control. After producing wells extended the leases, the sole gas purchaser and transporter, Panhandle, needed major pipeline renovations that halted production for over 60 days; the Holts sued to cancel the leases, and Sun argued the force majeure clause excused the interruption because Panhandle's failure to transport gas was the sole cause. The trial court cancelled the leases, and Sun appealed, arguing it deserved a directed verdict.