Kenai Oil & Gas, Inc. v. Grace Petroleum Corp.

This is an appeal from a partial summary judgment made final pursuant to Rule 54(b), A.R.Civ.P. We reverse and remand.

Detailed statements of both the case and the facts are necessary for an understanding of the dispositive issue here presented.

STATEMENT OF THE CASE

On January 23, 1984, Kenai Oil and Gas, Inc. ("Kenai"), filed this civil action against Grace Petroleum Corporation ("Grace"). The complaint alleged 1) that Kenai and Grace entered into an "Operating Agreement and Authority for Expenditure Agreement" on or about July 22, 1981, which set out the terms under which exploration for oil…