E.E. Cobb v. Natural Gas Pipeline Company of America and Chevron Usa, Inc.

JOHN R. BROWN, Circuit Judge:

Plaintiff-lessors brought suit for declaratory judgment and conversion damages against defendant-lessees, arguing that because production had ceased from plaintiff-lessors’ natural gas well, defendant-lessees’ oil and gas lease was automatically terminated. Defendants denied termination, and offered three affirmative defenses — laches, ratification, and adverse possession. The District Court in a non-jury trial held that the lease had terminated, and rejected all three affirmative defenses. On appeal, we reverse the District Court’s holding that the lease had…