KMI Continental Offshore Production Co. v. ACF Petroleum Co.

OPINION

LEVY, Justice.

KMI Continental Offshore Production Co. (“KMI”) and Florida Exploration Company (“Florida”) appeal from a summary judgment entered against them. The dispute centers around an oil and gas exploration agreement the parties entered into and whether KMI and Florida timely exercised an option available to them by the agreement. We hold that KMI and Florida did not timely exercise their option, and affirm the judgment.

On January 1, 1976, Florida, ACF Petroleum Co. (“ACF”), and Chessie Resources, Inc. (“Chessie”), 1 entered into an oil and gas exploration agreement called the…