Dixon v. Anadarko Production Company

JACKSON, Justice.

This is an action in equity by Mr. and Mrs. Dixon to cancel the deeper horizons of an oil and gas lease for an alleged failure of the lessee, Anadarko Production Company, to comply with the implied covenant to fully develop. Plaintiffs did not allege that a well if drilled to the deeper horizon would produce enough oil to repay the cost of drilling, equipping, and operating the well. Plaintiffs were proceeding upon the theory that “it is not necessary to allege or prove the ‘prudent operator’ rule or that a well drilled on the tract would produce in commercial quantities,…