Petroleum Funding Corp. v. Western Energy Development Co.

BABCOCK, Judge.

Defendant, Western Energy Development Co., Inc. (WEDCO), appeals the summary judgment in favor of plaintiff, Petroleum Funding Corp. (PFC), on its claim seeking rescission of an alleged agreement to purchase an interest in a petroleum lease. We reverse.

PFC and WEDCO executed an A.A.P.L. Form 610-1977 Model Operating Agreement (joint operating agreement) for the purpose of drilling an oil and gas well on a tract of land in Adams County known as the Piland lease. At the time the agreement was signed, neither party owned an interest in the mineral lease, although WEDCO had entered…