BOPCO needed a drilling rig for the purpose of drilling wells in Colorado. In January 2006, BOPCO and H&P executed a daywork drilling contract using the IADC form contract. Under the contract BOPCO was the operator and H&P was the contractor. The contract required H&P to use reasonable efforts to commence operations "on or about" March 20,2007. The parties had deleted the word "by" in the printed form language describing when H&P was to commence drilling. Likewise, the parties changed the form language as it related to the duration of the contract. The contract contained a daywork rate that increased from $23,300/day to $23,800/day. The contract also contained several liquidated damages provisions relating to the early termination of the agreement or other breaches. H&P experienced delays in manufacturing the drilling rig and did not commence operations until June 4, 2007. H&P paid the agreed-to-amount of liquidated damages for that delay. In 2009, BOPCO exercised its right to terminate the contract. The termination was effective upon the rig release date which was May 30, 2009. BOPCO made certain liquidated damages payments to H&P mat were apparently based on a June 4, 2007 commencement date and not the March 20, 2007 commencement date. It then filed this action seeking a declaratory judgment that March 20, 2007 was the proper commencement date under the contract and thus the date upon which BOPCO's early termination liquidated damages payment would be based. H&P filed a counterclaim for breach of contract. After both parties filed motions for summary judgment, the trial court granted BOPCO's motion and denied H&P's motion. The trial court concluded that the 1095-day term of the lease commenced on March 20, 2007 and that BOPCO properly exercised its right to early termination. Held: affirmed. The IADC form contract provided that the substantive law of Oklahoma should apply. Both Texas and Oklahoma law apply similar canons of construction to interpreting contracts. If the language is unambiguous it is given its plan and ordinary meaning and the contract will be enforced to carry out the intention of the parties as existed at the time the contract was executed. The court looks to the entire instrument to determine the intent of the parties. The court concluded that the contract made several references to March 20, 2007 as the commencement date of the contract. There is no express reference in the contract that it should start when H&P actually commenced operations. Even though the parties deleted the word "by" in the commencement provision, that did not render the language ambiguous as to when the contract was deemed to be commenced.
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