West v. Continental Oil Co.

RIVES, Circuit Judge.

Appellants sued in the state court asserting that a mineral lease executed by them as lessors on August 5, 1947, expired by its own limitations on August 5, 1948, because appellee, lessee, began no drilling operations and paid no delay rental as required by the lease. Appellee removed to the federal court and pleaded that oil was being produced in paying quantities on the anniversary date from an old well drilled under a former expired lease and that such production preserved the later lease.

The parties submitted the case on an agreed statement of facts which was adopted…