BP Keeps Gas Well Lease, Texas Supreme Court Rules

Law360, New York (April 28, 2017, 5:40 PM EDT) -- The Supreme Court of Texas on Friday overturned a lower court and ruled that BP America Production Co. did have the right to a natural gas well lease in the state, deciding that the plain language of the contract allowed it to secure its continuation with a payment.

The unanimous opinion, authored by Justice Paul W. Green, said that Red Deer Resources LLC, which had an interest in terminating BPs lease, never obtained a finding that the well was incapable of producing in paying quantities on a key date, which allowed BP’s lease to remain valid. The court also found that...

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