B.A. Kelly Land Co., L.L.C. v. Questar Exploration & Production Co.

LThe lessors, B.A. Kelly Land Co. and Augton Co., filed this suit in 2009 to declare a 1971 mineral lease automatically terminated due to the lessees’ failure to produce or perform operations for 11 months in 1988 and 1989. The district court sustained the lessees’ exceptions of prematurity and no cause of action based on the “judicial ascertainment” clause in the lease, and dismissed the suit without prejudice. The lessors now appeal. For the reasons expressed, we affirm in part, amend in part and remand.

Factual Background

In October 1971, Dorothy Richardson granted an oil, gas and mineral…