Lapeze v. Amoco Production Co.

POLOZOLA, District Judge:

Alice S. Lapeze and Hiram L. Shilling have filed this suit seeking to cancel an oil, gas and mineral lease executed by their father, Eugene Shilling, in favor of Amoco Production Company (hereinafter “Amoco”).1 This lease was executed on March 3, 1976 and was for a term of five years. The lease contained a provision stating that it would terminate on March 3, 1977, unless Amoco either commenced operations for the production of minerals or paid a rental of $5.00 per acre for each acre it elected to hold under the lease.2 The lease further provided that rental payments…