J.J. Lynn v. E. A. Maag

DAWKINS, District Judge.

Appellees owned an 80-acre tract of land and had a grass lease on an adjoining 450-acre tract. They pastured cattle on the land and maintained on their own tract a large surface watering tank. In 1948 they granted an oil and gas lease on the 80-acre tract to appellant for a primary term of three years; and in July, 1951, appellant entered into a contract with Hayden Farmer Drilling Company (called Farmer) whereby the latter would drill a test well for stated compensation.

Drilling operations began immediately, the well being located 75 to 100 yards from appellees’…