H.R. Casey v. Western Oil and Gas, Inc

In H.R. Casey v. Western Oil and Gas, Inc., 611 S.W.2d 676 (Tex. Civ. App.-Eastland 1980, writ ref'd n.r.e.), the lessee ceased production for two months, explaining the cessation on three grounds: (1) it was negotiating a new sales agreement with the gas company; (2) the gas company had disconnected its gas well and a gas compressor unit was required for reconnection; (3) three electric pump motors had been stolen. Id. at 679. Quoting Watson, but apparently unconfined by its language, the court of appeals concluded that the evidence regarding the causes of cessation, none of which could be classified as a mechanical breakdown or sudden stoppage, "supported the trial court's conclusion that the lessee held a valid oil and gas lease on lessor's land." Id. On that basis, the court of appeals held that the cessation of production was "temporary" and "did not result in automatic termination of the lease as a matter of law." Id. at 680.