Habendum Clause: Automatic Termination; Equitable Defenses Wells: Plugging and Abandonment; Ohio

摘要

In 1976, plaintiffs execute an oil and gas lease with the defendant's predecessor-in-intetest. The lease provides that it shall remain in force as long as oil and gas is produced and royalties paid. From 1976 through 2008, some oil and gas is produced and royalty payments are made. In 2009, a storm blew over a structure which, in turn, destroyed a pole that carried electricity to the well. A dispute arose as to where the pole would be located which led to a cessation of production from the welL In 2012, me Ohio Department of Natural Resources (ODNR) inspected the premises and found that there was no production and that the well should be plugged or production restarted. "Plaintiffs then file this declaratory judgment action seeking that the lease be declared null and void The trial court ruled in favor of the plaintiffs regarding the forfeiture of the lease and further ordered that the well be plugged within four months from the date of the trial. Held: affirmed in part, reversed in part and vacated in part. The Court of Appeals concluded that the trial court's finding that the plaintiffs bad not interfered with the defendant's ability to restart production was not against the manifest weight of the evidence. Evidence was adduced at trial showing that a portable generator might have been used by the defendant to generate power to re-start the well.