TX STATETexas Court of Appeals, 7th District (Amarillo)
2001

Krabbe v. Anadarko Petroleum Corp.

46 S.W.3d 308Texas Court of Appeals, 7th District (Amarillo) • Decided 2001Enforced
Force MajeureCited 54 times

HOLDING

Oil and gas lessors sued to terminate a lease after the lessee (Anadarko) temporarily stopped production due to processing plant shutdowns. The Texas court ruled the lease remained valid because temporary production stops caused by mechanical issues or equipment failures don't trigger lease termination if the operator acts diligently to restart. This protects operators from losing their rights during unavoidable operational interruptions.

KEY FINDINGS

Force Majeure

Temporary shutdowns for maintenance, equipment failure, or force majeure events don't automatically kill a lease if you resume work promptly and in good faith

FULL COURT OPINION