Amoco Production Co. v. Alexander

DOYLE, Justice.

This is an appeal from a judgment based on a jury verdict wherein royalty owners John Alexander, et al (the Alexanders) recovered $3,916,659 in actual and exemplary damages from Amoco Production Company (Amoco) for its failure to perform as a reasonably prudent operator under certain lease agreements, thereby causing permanent drainage loss of otherwise recoverable oil from the leased premises. Amoco principally contends that the drainage was field-wide rather than local and that under its lease agreements with the Alexanders, it is under no legal obligation to prevent such…