USG Breached Trans-Western Oil Lease, Judge Rules

Law360, New York (January 25, 2011, 6:57 PM EST) -- A federal judge has ruled that U.S. Gypsum Co. breached an oil and gas lease to Trans-Western Petroleum Inc., rejecting USG's argument that it legally rescinded the contract for oil exploration in Utah based on a "mutual mistake."

Judge Ted Stewart of the U.S. District Court for the District of Utah granted Trans-Western's summary judgment bid Monday for declaratory relief, breach of contract and quiet possession but denied its bid for an entry of damages against USG at this point.

The five-year-old dispute centers around lands...
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