Oil & Gas Litigation Analysis
Home Cases Mattison v. Trotti
Lease Litigation

Mattison v. Trotti

United States Court of Appeals, Fifth Circuit 17412 resolved

The Fifth Circuit affirmed termination of an oil and gas lease covering an undivided interest where the lessees failed to pay delay rentals or commence drilling operations, holding that drilling by another company holding a lease on different undivided interests in the same tract could not satisfy the unless clause. The court rejected appellants' argument that production language in the habendum clause permitted them to hold the lease without providing consideration through their own drilling operations.

Analysis