Tucker v. Hugoton Energy Corp.
Kansas Supreme Court
855 P.2d 929 (Kan. 1993)
Relevant factsFree
Hugoton's (defendant) predecessor stopped repairing mechanically failing, water-heavy wells and instead invoked the lease's shut-in royalty clause after industrial gas sales declined, even though a limited market for the gas still existed; Tucker (plaintiff), the lessor, sued for a declaration the lease had expired for failure to produce in paying quantities.
IssueFree
Whether the existence of a limited market for gas sales precludes a lessee from invoking a shut-in royalty clause of an oil and gas lease.