Ramsey v. Carter Oil Co.

LINDLEY, District Judge.

Implicit in this oil lease is an obligation on the part of the lessee to use reasonable diligence to develop the demised premises so long as the enterprise can be carried on at reasonable profit. Daughetee v. Ohio Oil Company, 263 Ill. 518, 105 N.E. 308. Implied also is a covenant that the lessee will by appropriate measures protect the leasehold against drainage by offset wells. Vol. 2 Summers, Oil & Gas, Perm. Ed., § 399; Powers v. Bridgeport Oil Company, 238 Ill. 397, 87 N.E. 381; Geary v. Adams Oil & Gas Co., D.C., 31 F.Supp. 830. It is clear, therefore, that…