Supreme Court of Arkansas

Southwestern Energy Production Company v. James Elkins and Ruby Elkins as Husband and Wife

December 9, 20102010 Ark. LEXIS 588

Summary

The court held that the lease remained effective as to Sections 8, 9, and 31, and also as to Sections 4 and 5, because drilling and production on Section 9 occurred within the statutory one-year period and extended the lease across all leased acreage. It further held that Southwestern Energy's drilling obligations were suspended from the date the Elkinses filed suit, rather than from the circuit court's order. Two justices concurred in part and dissented in part, arguing that Sections 4 and 5 should have been released while agreeing with the modified suspension date.