Sunray Mid-Continent Oil Company v. McDaniel

4 Citing cases

  1. Spaeth v. Union Oil Co. of California

    710 F.2d 1455 (10th Cir. 1983)   Cited 18 times
    Applying Oklahoma law

    The prudent operator rule is usually the yardstick to determine compliance with this covenant. Sunray Mid-Continent Oil Co. v. McDaniel, Okl., 361 P.2d 683, 685. Union asserts that the prudent operator rule does not apply because the spacing order prevented it from drilling another well on Section 4. This argument was specifically rejected by the Oklahoma Supreme Court in Corporation Commission v. Union Oil Company of California, Okl., 591 P.2d 711, 715, which, after quoting 52 O.S. 1971 § 87.1[ 52-87.1](c) said:

  2. Little v. Texaco, Inc.

    456 F.2d 219 (10th Cir. 1972)   Cited 9 times
    Interpreting Federal Rule 8(e)

    Presumably he did not have evidence to establish that the defendant did not come up to the standard of a prudent operator in like circumstances. See Wilcox v. Ryndak, 174 Okl. 24, 49 P.2d 733, 736 (1935); Sunray Mid-Continent Oil Company v. McDaniel, 361 P.2d 683, 685 (Okl. 1961); Townsend v. Creekmore-Rooney Co., 358 P.2d 1103, 1104 (Okl. 1960); Jordan v. Texaco, Inc., 297 F. Supp. 1140, 1142 (W.D.Okl. 1969); Spiller v. Massey Moore, 406 P.2d 467, 471-472 (Okl. 1965). Wilcox v. Ryndak, supra; Chenoweth v. Pan-American Petroleum Corporation, 314 F.2d 63, 66 (10th Cir. 1963).

  3. Spiller v. Massey Moore

    406 P.2d 467 (Okla. 1965)   Cited 10 times

    "1. There is no implied obligation on the part of an oil and gas lessee to drill an offset well to a well on adjoining premises, or to drill an additional well on the leased premises after oil or gas has been discovered thereon, save and except where the drilling of such well would probably, taking all of the existing facts and circumstances into consideration, produce sufficient oil to repay the cost of drilling, equipping, and operating such well, and also to produce a reasonable profit on the entire outlay, and neither the lessee nor the lessor is the arbiter of whether an offset well should be drilled or the leased premises further developed, but both are bound by what a reasonably prudent operator would do under similar circumstances, and under no circumstances will a lessee be required to drill an offset or an additional well when the same would probably not result profitably to him." Also see Townsend v. Creekmore-Rooney Co., Okla., 358 P.2d 1103; Sunray Mid-Continent Oil Co. v. McDaniel, Okla., 361 P.2d 683. The rule as quoted has evolved from that announced in Brewster v. Lanyon Zinc Co., 8 Cir., 140 F. 801, quoted at length and adopted in Oklahoma in Indiana Oil, etc. Co. v. McCrory et al., 42 Okla. 136, 140 P. 610.

  4. Monsanto Chemical Co. v. Andreae

    147 So. 2d 116 (Miss. 1962)   Cited 8 times

    Oil Corp. v. Bilby, 199 Okla. 430, 186 P.2d 823; Fontenot v. Austral Oil Exploration Co. Inc., 168 F. Supp. 36; Geary v. Adams Oil Gas Co., 31 F. Supp. 830; Gerson v. Anderson Prichard Production Co., 149 F.2d 444; Hartman Ranch Co. v. Associated Oil Co., 10 Cal.2d 232, 73 P.2d 1163; Humphreys Oil Co. v. Tatum, 26 F.2d 882; Hutchins v. Humble Oil Refining Co., 161 S.W.2d 571; Indian Territory Illuminating Oil Co. v. Haynes Drilling Co., 180 Okla. 419, 69 P.2d 624; Kleppner v. Lemmon, 197 Pa. 430, 47 A. 353; Lafitte Co. v. United Fuel Oil Co., 177 F. Supp. 52; Millette v. Phillips Petroleum Co., 209 Miss. 687, 48 So.2d 344; Myers v. Shell Petroleum Corp., 153 Kan. 287, 110 P.2d 810; North American Petroleum Co. v. Knight, 321 P.2d 964; Poindexter v. Lion Oil Refining Co., 205 Ark. 978, 167 S.W.2d 492; Ramsey v. Carter Oil Co., 74 F. Supp. 481; Renner v. Monsanto Chemical Co., 187 Kan. 158, 354 P.2d 326; R.R. Bush Oil Co. v. Beverly-Lincoln Land Co., 69 Cal.App.2d 246, 158 P.2d 754; Sunray-Midcontinent Oil Co. v. McDaniel, 361 P.2d 683; Tidewater Associated Oil Co. v. Stott, 159 F.2d 174; York v. Trigg, 87 Okla. 214, 209 P. 417; Thornton, Oil and Gas, Sec. 101. III. Public policy dictates adherence to the standard of prudence and diligence in the application of the implied covenant to protect from drainage.