Gulf Production Co. v. Cruse

The Gulf Production Company, on May 16, 1916, secured an oil and gas lease from W. W. Cruse on 125 acres of land in Hardin county for a consideration of $2,962.50. The lease provided that the company should be under no obligation to drill any well or wells on the land at any time within the 10-year period that the lease was to run, except necessary offset wells. The lease contains the following forfeiture provision:

“Sixth. Under penalty of forfeiture of the rights hereby granted, the company agrees to pay the taxes on the property above described for the present year and those accruing…