Implied Covenant to Prevent Drainage: Damages Damages: Exemplary Damages Fraud: Elements

摘要

The controversy in this case involves Lindemann's operation of, and partial ownership in, wells drilled in 1991 and later years on the D. D. Strange lease, the O'Keefe lease, the Powell lease and the Hoff lease. Strange is one of the other owners of interests in the wells on the D. D. Strange lease. In 2000, Strange becomes concerned about the D. D. Strange lease because it quit producing oil. Further investigation indicates that the wells on that lease were shut-in for some time, even though the well that is inspected appears to be fully capable of flowing oil. Strange and Brock subsequently take over operations on the lease, resume actual production and further enhance the capability of the wells, which results in a significant increase in production. Strange sues Lindemann in 2001, alleging that Lindemann shut in the Strange lease while pumping oil out of the other surrounding leases, resulting in drainage.