Bryan v. Big Two Mile Gas Co.

In the instant case we rule that an oil and gas company whose lease terminated due to an unexeused cessation of production must pay to the property owner the value of the gas that was produced after the lease termination, less a portion of the reasonable costs of production.

I

Facts & Background

The appellant is Isabel J. Bryan (“Mrs. Bryan”); the appellee is Big Two Mile Gas *115Company (“BTM”). In 1935, BTM’s prede-eessor-in-title entered into an oil and gas lease with Mrs. Bryan’s predecessor-in-title. The lease contained a “thereafter” clause that provided that the lease would last “for the…