Federal Oil Co. v. Brower

The Federal Oil Company is the operating lessee under two leases for the production of oil and gas from adjoining tracts of land. Under the original terms of the first lease Federal had the right to produce oil and gas from a 16%-acre parcel of land. The lease provided that all wells should be bottomed under the land and that no wells should be drilled on a certain 100-foot strip on the edge of the leased premises. The lessee was given exclusive possession of the surface except for a limited right in the lessors to use the land for agricultural purposes. After Federal acquired its interest in…