Pan American Petroleum Corporation v. Hardy

McDONALD, Chief Justice.

This is an action for damages by lessors, Hardy et al., against the lessees, Pan American Petroleum Corporation, et al., (of a 133 acre tract of land in the East Bay City Gas field), for failure to develop, and for drainage, of a second reservoir, hereafter called the “B” sand.

Plaintiffs alleged that defendants in February 1945 drilled and completed a gas and distillate well into the “A” sand; that no well was drilled into a lower reservoir, the “B” sand, until 18 March, 1960; that plaintiffs’ lease with defendants provides that plaintiffs receive ⅛ of the oil, gas,…