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NORTHUP PROPERTIES, INC. v. CHESAPEAKE APPALACHIA, L.L.C.

No. 08-5718.

567 F.3d 767 (2009)

NORTHUP PROPERTIES, INC., Plaintiff-Appellant, v. CHESAPEAKE APPALACHIA, L.L.C., Defendant-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided and Filed: June 8, 2009.

Attorney(s) appearing for the Case

ARGUED: Eldred Edward Adams, Jr., Adams & Adams, Louisa, Kentucky, for Appellant. Leigh Gross Latherow, VanAntwerp, Monge, Jones, Edwards & McCann, LLP, Ashland, Kentucky, for Appellee. ON BRIEF: Eldred Edward Adams, Jr., Adams & Adams, Louisa, Kentucky, for Appellant. Leigh Gross Latherow, Keri E. Lucas, VanAntwerp, Monge, Jones, Edwards & McCann, LLP, Ashland, Kentucky, for Appellee.

COOK, J., delivered the opinion of the court, in which MERRITT, J., joined. WHITE, J. (pp. 774-76), delivered a separate opinion joining in the affirmance.

OPINION

COOK, Circuit Judge.

In 1968, the heirs of J.H. Northup, predecessors in interest to appellant Northup Properties, Inc. ("Northup"), executed an oil-and-gas lease of 4,327 acres in Kentucky (the "Lease") to United Fuel and Gas Company, the predecessor in interest to appellee Chesapeake Appalachia, L.L.C. ("Chesapeake"). For nearly forty years, no lessee—including Chesapeake—marketed either oil or gas from the leased property. Northup...

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