Shell Oil Company v. Stansbury

George Stansbury and wife leased their lands to Shell Oil Company for oil, gas and other minerals. The lease expressly imposed a duty upon shell to drill an offset well in the event a draining well was located within a specified distance of the Stansbury property lines. Shell also owned an oil and gas lease upon adjacent lands leased by Bill Daniel. It drilled some producing wells upon the Daniel tract which substantially drained oil and gas from the Stansbury lands. The wells on the Daniel tract were located beyond the offset distance specified in the Stansbury lease. The Court of Civil…