Anadarko Petroleum Corporation, Petitioner v. Phillip Thompson, Respondents

Summary

The Texas Supreme Court held that a gas mining lease does not terminate when actual production ceases for more than sixty days if the well is capable of producing gas; the lease is sustained by either actual production or the capability of production, and the cessation‑of‑production clause only applies when the lease would otherwise terminate under the habendum clause. The Court also defined "capable of production" as the ability to produce in paying quantities without additional equipment or repairs, reversed the Court of Appeals judgment, and remanded for further proceedings.