Bill G. Isler v. Texas Oil & Gas Corporation

McKAY, Circuit Judge.

Defendant Texas Oil and Gas Corporation (TXO) appeals from a jury’s verdict of negligence in this diversity ease.

TXO owned a federal oil and gas lease that it farmed out to plaintiff Mr. Isler. The farmout agreement provided that TXO would use its best efforts to make rental payments but had no responsibility to Mr. Isler if it failed to do so. The agreement further provided that TXO would give notice before ceasing to make payments. TXO, through oversight, failed to make the necessary rental payments and the lease expired. Mr. Isler and his assignees completed two wells…