Gulf Oil Corporation v. E. L. Reid

Summary

The Texas Supreme Court affirmed the Court of Civil Appeals, holding that the oil and gas lease terminated at the end of its primary term because the shut‑in royalty was not tendered timely, there was no production in paying quantities, and the 60‑day cessation‑of‑production clause did not apply. The lessee’s negotiations for a market were not considered "operations" that could extend the lease.