Enduro Operating LLC, Plaintiff-Respondent v. Echo Production, Inc.; Talus, Inc.; Twin Montana, Inc.; Cimarron…

Summary

The New Mexico Supreme Court reversed the Court of Appeals and the district court, holding that an operator has actually commenced drilling under a joint operating agreement when it demonstrates a present good‑faith intent to diligently carry on drilling, which can be shown by off‑site commitments such as an enforceable drilling contract and does not require a drilling permit. It also held that summary‑judgment decisions are reviewed de novo and that the appellate award of attorneys’ fees was premature because the judgment was stayed pending certiorari. The case was remanded for further proceedings.