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MARALEX RESOURCES, INC. v. GILBREATH

No. 27,366.

76 P.3d 626 (2003)

134 N.M. 308

2003-NMSC-023

MARALEX RESOURCES, INC., Plaintiff-Counter Defendant-Respondent, v. Norman L. GILBREATH, Loretta E. Gilbreath and Caprock Energy Company, Inc., Defendants-Counter Plaintiffs-Petitioners, and Norman L. Gilbreath, Loretta E. Gilbreath and Caprock Energy Company, Inc., Third Party Plaintiffs-Petitioners, v. A.M. "Mickey" O'Hare, Third Party Defendant-Respondent.

Supreme Court of New Mexico.

August 19, 2003.

Attorney(s) appearing for the Case

Tully & Jolley Law Offices, Richard T.C. Tully, Farmington, NM, for Petitioners.

Gallegos Law Firm, P.C., J.E. Gallegos, Michael J. Condon, Santa Fe, NM, for Respondents.

OPINION

MAES, Chief Justice.

{1} This is an action to terminate an oil and gas lease in San Juan County, New Mexico. The lessee's gas well stopped producing between December 1990 and March 1991. The lessors asserted the lease had terminated for lack of production because the lessees failed to tender shut-in royalty payments during that time and failed to resume operations within 60 days after the well stopped producing. The district court agreed and concluded...

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