Ark. Court Says Lessee's Participation in Pooled Unit Extends Lease's Primary Term

LITTLE ROCK, Ark. - An energy company's decision to combine a lease with others in an integrated drilling effort extended the primary term of an oil and gas lease despite the fact that no drilling occurred on the lessor's property or by the lessee, an Arkansas federal judge has ruled. Barber, et ux. v. Chesapeake Exploration LLC, et al., No. 11-cv-00234-JLH (E.D. Ark.).

Judge J. Leon Holmes of the U.S. District Court for the Eastern District of Arkansas awarded summary judgment to Chesapeake Exploration LLC on Jan. 13, finding that Chesapeake's lease with Dewayne and Paulette Barber continued after the …