Mesa Petroleum Co. v. Scheib

SETH, Chief Judge.

This is an appeal from a judgment of the trial court which held that an oil and gas lease in Kansas contained provisions equivalent to a Pugh clause. This conclusion led to a division of the lease into two leases one covering the acreage pooled with other *615tracts and the other covering lands not pooled, with a holding that one had expired.

The basic lease provisions should, ordinarily, apply when there is a producing well on the lease as in the case before us, and the lease so extended in its entirety by production. This lease covers 600 contiguous acres. After a commercial…