Atlantic Richfield Co. v. Gruy

OPINION

REEVES, Justice.

This is an appeal from a jury trial resulting in a judgment cancelling the deep well drilling rights of a lessee oil company due to its failure to develop its leasehold below 3,750 feet.

Appellees, Joseph Gruy, Jr., Viggo Gruy, and Dagmar Gruy Cole (Gruys) are the beneficial owners of the original lessor’s interest under two leases (hereinafter referred to as “C” and “D” leases). Atlantic Richfield Company (ARCO) is a successor to the original lessee of the lease from depths below 3,750 feet, it having assigned its interest in the lease above that depth.

The original…