Kansas - Oil & Gas

摘要

Two oil and gas leases were granted in 1918, the "Pearson lease" covering 80 acres and the "Finnerty lease" covering an adjoining 80 acres. Each lease has a five-year primary term and the current lessee, R.T. Enterprises of Kansas, Inc. (R.T.), contends they continue to be maintained by production. When R.T. informed the lessors it would be conducting new operations on its leases, the lessors informed R.T. that they believed the leases were invalid. The lessors of the Pearson lease and the severed surface owners of the Finnerty lease sued to establish that the leases had terminated. The district court granted R.T.'s motions for summary judgment, confirming that the two leases were valid. The plaintiffs appealed and the district court's rulings were affirmed in Adamson v. Drill Baby Drill, LLC, No. 115,762, 2018 WL 560890, 409 P.3d 874 (Table) (Kan. Ct. App. Jan. 26, 2018) (unpublished) (petition for review filed Feb. 26, 2018).