Advent Oil & Operating, Inc. v. S & E Enterprises, LLC

Advent Oil & Operating, Inc. (AO & 0) and S & E Enterprises, LLC (S & E) were partners in an oil well on land belonging to a third party, when they entered into the agreement at issue here. They hoped the oil well (in which AO & O and S & E had other partners) would yield oil and gas over an extended period, and were aware that, in that event, substantial quantities of salt water (which would accompany petroleum to the surface) would need to be dealt with, as a matter not only of industry practice but also in order to meet requirements the land owner had placed in the oil well partnership’s…