Belmont Quadrangle Drilling Corp. v. Galek

The plaintiff is a domestic corporation, authorized to explore for, produce and sell oil and gas. In 1929 it made a geological survey of a large tract to determine the probability of finding oil and gas. It was an unexplored territory. Following the survey, it obtained leases on an extensive block of land, commenced drilling and found gas, apparently in large quantities.

The defendant Margarita Galek owned 160 acres in this tract, occupied by herself and her husband, the defendant Michael Galek. On October 15, 1929, they signed and delivered to the plaintiff a lease granting, among other…