Danny Snowden and Shelia Snowden v. Jre Investments, Inc., Chesapeake Exploration, LLC, Chesapeake Exploration…

Summary

The court held that the Arkansas statute governing oil-and-gas leases extended by production did not sever the nonproducing acreage from the lease because drilling had commenced on part of the leased premises within the statutory period. The court also held that the lessee was entitled to suspend its drilling obligations while the lessors litigated whether the lease remained valid. WILLS, J., dissenting in part and concurring in part, would have limited the statutory exception to sections other than the producing section but agreed that drilling obligations should be suspended during the litigation.