Owen J. Roberts, Sauder v. Mid-Continent Petroleum Corporation…
“ The production of oil on a small portion of the leased tract cannot justify the lessee's holding the balance indefinitely and depriving the lessor, not only of the expected royalty from production pursuant to the lease, but of the privilege of making some other arrangement for availing himself of the mineral content of the land. ”
Owen J. Roberts, Sauder v. Mid-Continent Petroleum Corporation…
“ The matter in dispute is the respondent's alleged failure to comply with its obligation. The petitioners say that, if the lessee with good reason believes there is no mineral to be obtained by further drilling, it should give up the lease; the respondent insists that, as there is only a possibility of finding mineral, no prudent operator would presently develop, but the mere possibility entitles it to hold the lease, because it is producing oil from a portion of the area. ”
Owen J. Roberts, Sauder v. Mid-Continent Petroleum Corporation…
“ The lessee was to deliver to the lessor one-eighth of the oil realized, and, if gas should be found, $100 per year was to be paid for each gas well so long as its product was sold or marketed. If no well were commenced within one year, all rights and obligations of the parties were to cease upon notice from the lessor to that effect, provided that the lessee should have the right to continue the lease in force from year to year until a well should be drilled, by paying an annual rental of $1 per acre. ”
