Ferguson v. Gulf Oil Corporation

This is an action to cancel an oil and gas lease and for damages. Plaintiffs, owners of one-fourth of the royalty interest, in three causes of action, alleged: (1) That the lease had been abandoned, (2) that defendants had breached the implied covenants of the lease, and (3) that plaintiffs had been damaged by defendant’s refusal to surrender the lease upon demand. Prayer was for cancellation of the entire lease and for damages.

Defendant Gulf Oil Corporation, owner and operator of the lease, by answer alleged: (1) That plaintiffs together owned only one-fourth of the royalty interest, and…