Anadarko Petroleum Corporation, Petitioner v. Phillip Thompson, Respondents

Summary

The Texas Supreme Court held that a gas lease that states it lasts "as long as gas is or can be produced" is sustained by either actual production or the capability of production, and that the lease’s cessation‑of‑production clause only applies when the lease would otherwise terminate under the habendum clause. The Court defined "capable of production" as a well that can produce in paying quantities without additional equipment or repairs, reversed the Court of Appeals decision, and remanded for further proceedings.