Seacat v. Mesa Petroleum Co.

MEMORANDUM AND ORDER

THEIS, District Judge.

This action is before the Court on motions for summary judgment by plaintiffs and by defendant Mesa Petroleum Co. (Mesa). The key issue is the legal duty of an oil and gas lessee to the lessor when the lessee’s well on a neighboring leasehold is draining oil from beneath lessor’s tract.

Plaintiffs contend, in essence, that defendant is strictly liable for the value of the oil which is drained, regardless of the economic feasibility of drilling an offset well on plaintiffs’ land. Defendant Mesa contends that the implied covenant to protect against…