shut-in royalty clause in Oklahoma

2018Now, in your opinion, do you believe that you could produce seven wells in question here today in-in paying quantities? *1061 A. It would pay to me. 38 Defense counsel reminded the trial court of Hall's testimony during closing argument, and the judge seemingly relied upon this admission in reaching his judgment. 39 ¶10 On May 25, 2016, the trial court issued judgment against Hall on both claims. 40 The trial court relied upon Pack v. Santa Fe Minerals , 1994 OK 23 , 869 P.2d 323 , providing that a "lease will continue as long as the well is capable of production in paying quantities subject,

2018Now, in your opinion, do you believe that you could produce seven wells in question here today in-in paying quantities? *1061 A. It would pay to me. 38 Defense counsel reminded the trial court of Hall's testimony during closing argument, and the judge seemingly relied upon this admission in reaching his judgment. 39 ¶10 On May 25, 2016, the trial court issued judgment against Hall on both claims. 40 The trial court relied upon Pack v. Santa Fe Minerals , 1994 OK 23 , 869 P.2d 323 , providing that a "lease will continue as long as the well is capable of production in paying quantities subject,

2018Therefore, the lease will continue as long as the well is capable of production in paying quantities subject, of course, to any violation of any other express provisions such as the shut-in royalty clause or implied covenants such as the covenant to market."); Hoyt , 1980 OK 1 , ¶ 10, 606 P.2d at 563 (stating the inverse: "If the lessee fails to resume operations within the 60-day period provided in this clause neither the cessation of production clause or the habendum clause is satisfied and the lease terminates upon the expiration of the given time period."). 86 Pack , 1994 OK 23 , ¶ 16, 869

2018Therefore, the lease will continue as long as the well is capable of production in paying quantities subject, of course, to any violation of any other express provisions such as the shut-in royalty clause or implied covenants such as the covenant to market."); Hoyt , 1980 OK 1 , ¶ 10, 606 P.2d at 563 (stating the inverse: "If the lessee fails to resume operations within the 60-day period provided in this clause neither the cessation of production clause or the habendum clause is satisfied and the lease terminates upon the expiration of the given time period."). 86 Pack , 1994 OK 23 , ¶ 16, 869

2018Therefore, the lease will continue as long as the well is capable of production in paying quantities subject, of course, to any violation of any other express provisions such as the shut-in royalty clause or implied covenants such as the covenant to market."); Hoyt , 1980 OK 1 , ¶ 10, 606 P.2d at 563 (stating the inverse: "If the lessee fails to resume operations within the 60-day period provided in this clause neither the cessation of production clause or the habendum clause is satisfied and the lease terminates upon the expiration of the given time period."). 86 Pack , 1994 OK 23 , ¶ 16, 8

2018Therefore, the lease will continue as long as the well is capable of production in paying quantities subject, of course, to any violation of any other express provisions such as the shut-in royalty clause or implied covenants such as the covenant to market."); Hoyt , 1980 OK 1 , ¶ 10, 606 P.2d at 563 (stating the inverse: "If the lessee fails to resume operations within the 60-day period provided in this clause neither the cessation of production clause or the habendum clause is satisfied and the lease terminates upon the expiration of the given time period."). 86 Pack , 1994 OK 23 , ¶ 16, 869

2011Pack, 1994 OK 23, ¶ 20 , 869 P.2d at 329 ; Danne v. Texaco Exploration and Production Inc., 1994 OK CIV APP 138, ¶ 24 , 883 P.2d 210, 217 (Rapp, J. concurring). 20 Here, the Appellees have not asserted violation of a shut-in royalty clause. 10 Smith, the only lessor shown in the appellate record as filing an answer, admits receipt of shut-in royalty.

2011Pack, 1994 OK 23, ¶ 20 , 869 P.2d at 329 ; Danne v. Texaco Exploration and Production Inc., 1994 OK CIV APP 138, ¶ 24 , 883 P.2d 210, 217 (Rapp, J. concurring). 20 Here, the Appellees have not asserted violation of a shut-in royalty clause. 10 Smith, the only lessor shown in the appellate record as filing an answer, admits receipt of shut-in royalty.

1994Conclusion In Rist v. Westhoma Oil Co., 385 P.2d 791, 792 (Okla.1963), the syllabus by the Court reads: “Where a cause is submitted upon an agreed statement of facts, it is the duty of this court on appeal to apply the law to such facts as a court of first instance and direct judgment accordingly.” We conclude, based upon the stipulated facts presented to us, that the leases did not terminate under the terms of the habendum clause, the cessation of production clause, or the shut-in royalty clause.

1991Bixler v. Lamar Exploration Company, 733 P.2d 410, 412 (Okla.1987); Gard v. Kaiser, 582 P.2d 1311 (Okla.1978).