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ATLANTIC RICHFIELD CO. v. GRUY

No. 04-85-00188-CV.

720 S.W.2d 121 (1986)

ATLANTIC RICHFIELD COMPANY, Appellant, v. Joseph GRUY, Jr., Viggo Gruy, & Dagmar Gruy Cole, Appellees.

Court of Appeals of Texas, San Antonio.

Rehearing Denied October 21, 1986.

Attorney(s) appearing for the Case

Stephen R. Kirklin, Edward J. Howlett, Jr., Houston, for appellant.

Marion E. Williams, Jr., Beeville, for appellees.

Before ESQUIVEL, TIJERINA and REEVES, JJ.

OPINION

REEVES, Justice.

This is an appeal from a jury trial resulting in a judgment cancelling the deep well drilling rights of a lessee oil company due to its failure to develop its leasehold below 3,750 feet.

Appellees, Joseph Gruy, Jr., Viggo Gruy, and Dagmar Gruy Cole (Grays) are the beneficial owners of the original lessor's interest under two leases (hereinafter referred to as "C" and "D" leases). Atlantic Richfield Company (ARCO) is a successor...

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