Libby v. De Baca

McGHEE, Justice.

This is an appeal from a decree cancel-ling'a ten year “unless” oil and gas lease, for non-compliance with the implied covenants to diligently develop and operate the lease following discovery of carbon dioxide gas (CO2) in paying quantities. We will refer to the parties as they appeared in the trial court.

The plaintiff is the son-in-law of the lessor and acquired title shortly prior to the filing of this suit with knowledge of the rights of the defendants. The lease was made March 4, 1935, covering 26,000 acres in Harding County, and the only consideration was the promise of…