Union Gas & Fuel Corp. v. Teton Syndicate

The opinion of the court was delivered by

Mason, J.:

The Teton Syndicate owned three oil and gas leases. It assigned the gas rights in these leases to the Union Gas and Fuel Corporation, which assumed certain obligations with respect to the drilling of wells. One provision of the contract was that if any well drilled by the gas company should discover oil, the syndicate should satisfy itself whether it was a paying oil producer, and if so satisfied should pay the gas company within twenty days the cost of drilling and equipment and thereby become the owner of the well. The gas company drilled a…