Watson v. Rochmill

In Watson v. Rochmill, 137 Tex. 565, 155 S.W.2d 783, 784 (Tex. 1941), the Court applied the "temporary cessation of production" (TCOP) doctrine doctrine to a two year and seven-month cessation. 155 S.W.2d at 784. Despite the fact that it was physically possible to extract oil, economic realities caused by the Depression were disincentives to production. Id. After stating the general TCOP rule, this Court concluded that the lease terminated because: (1) the cessation of production, which lasted for two years and seven months, was not "temporary," and; (2) "the cessation of production for this long period of time was not brought about nor induced by any mechanical breakdown or other condition in connection with the well or the equipment used in connection therewith." Id. The Court noted that the "demoralized condition of the oil market . . . in no wise prevented the operation of the well by the lessee for whatever oil it would produce." 155 S.W.2d at 784. The Court also noted, however, that "these conditions may have rendered it unprofitable to operate the well" and could have been contracted against. Id.