Phillips Petroleum Co. v. Millette

I cannot agree with a requirement that an oil lessee must drill a protection well where it would have to do so at an economic loss, and where the land in question does not contain oil in paying quantities. A doctrine of absolute liability for all drainage by adjoining wells is repugnant to a principle basic in the entire development of oil and gas law. Moreover, I cannot see how appellees have been damaged when they have lost nothing of value recoverable at a profit.

The effect of the controlling opinion is to hold an oil lessee of two adjoining tracts absolutely liable for all drainage from…