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GULF OIL CORPORATION v. REID

No. A-7343.

337 S.W.2d 267 (1960)

GULF OIL CORPORATION, Petitioner, v. E. L. REID, Respondent.

Supreme Court of Texas.

Rehearing Denied July 20, 1960.

Attorney(s) appearing for the Case

Walter C. Clemons, John E. Bailey, Fred A. Lange, Houston, and Ira Butler, Fort Worth and David T. Searls, Pittsburgh, Pa., on rehearing, for petitioner.

E. L. Reid and S. P. Dunn, Orange, for respondent.

CULVER, Justice.

The chief question presented here is whether the so-called "shut-in" royalty payment, tendered after a well capable of producing gas only in paying quantities had been capped, was so timely made as to extend the term of an oil and gas lease after the expiration of the primary term.

On December 9, 1943 E. L. Reid, who owned an undivided 1/8th mineral interest, executed to Gulf Oil Corporation an oil and gas lease for a primary term of five...

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