Abstracts of Current Decisions on Mines and Mining: May to August, 1917 Page: 86
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DECISIONS ON MINES AND MINING.
POSSESSION BY LESSEE-PRESUMPTION.
A lessee of an oil and gas lease may be required to pay rent so
long as he holds possession, although the lease by its terms may be
at an end; but the execution of an oil and gas lease creates no
presumption of subsequent possession by the lessee.
Ash Grove Lime & Portland Cement Co. v. Chanute Brick & Tile Co. (Kansas),
164 Pacific 1087, p. 1088.
COMMENCEMENT TO DRILL-WHAT CONSTITUTES.
An oil and gas lease provided that if the lessor should sell the
leased land before the lessee commenced drilling operations the lease
should terminate. The driving of a stake to indicate the location of
a well and the driving of another stake locating a place to set a boiler
to drive a drilling machine on the part of the lessee do not constitute
a commencement of operations to drill within the provisions of the
Henning v. Wichita Natural Gas Co. (Kansas), 164 Pacific 297, p. 298.
In the matter of the execution by a landowner of an ordinary oil
and gas lease on shares, exploration and development constitute the
paramount or controlling consideration therefor.
Advance Oil Co. v. Hunt (Indiana App.), 116 Northeastern 340, p. 342.
DEVELOPMENT-DUTY TO DRILL ADDITIONAL WELLS.
The number and location of oil wells requsite to the performance of
the covenant to develop on the part of the lessee, depends upon the
character of the leased lands. The area of the lands does not
determine the number and their relation to one another and is not
governed by any fixed rule. Whether, after the discovery of oil
or gas by means, of the initial or experimental well, there is a duty
to sink additional wells depends upon the probability arising from
the circumstances surrounding the property, that an additional well
or wells will be profitable to the lessee. The lessee in an oil lease is
under no duty to operate at a loss to himself in order to make the
premises profitable to the lessor, but it is only under circumstances
indicative of mutual profit of a profit to the lessee as well as to the
lessor that the duty to develop devolves.
Steele v. American Oil Dev. Co. (West Virginia), 92 Southeastern 410, p. 413.
IMPLIED COVENANT TO DEVELOP---BURDEN OF PROOF.
A lessor in an oil and gas lease in an action against the lessee for
damages for an unreasonable or arbitrary evasion of implied cove-
nants to develop, where gas or oil has been found in paying quantities,
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Thompson, Joseph Wesley. Abstracts of Current Decisions on Mines and Mining: May to August, 1917, report, December 1917; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc38745/m1/100/: accessed December 15, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.