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CONTINENTAL OIL CO. v. AMERICAN QUASAR PETROLEUM

No. 77-2036.

599 F.2d 363 (1979)

CONTINENTAL OIL COMPANY and Gulf Oil Corporation, Plaintiffs-Appellants, v. AMERICAN QUASAR PETROLEUM CO. OF NEW MEXICO, INC., Defendant-Appellee.

United States Court of Appeals, Tenth Circuit.

Decided May 15, 1979.

Attorney(s) appearing for the Case

Houston G. Williams, Casper, Wyo. (with Richard L. Williams, Casper, Wyo., on the brief), of Wehrli & Williams, Casper, Wyo. (and with Floyd E. Radloff, Continental Oil Company Counsel, Houston, Tex. and E. S. Hurst, Gulf Oil Corporation Atty., Tulsa, Okl., on the brief), for plaintiffs-appellants.

Glenn Parker of Hirst & Applegate, Cheyenne, Wyo., for defendant-appellee.

Before SETH, Chief Judge, and McKAY and LOGAN, Circuit Judges.

McKAY, Circuit Judge.

This diversity case involves the interpretation of an oil and gas farmout agreement. The matter was decided below on cross-motions for summary judgment. The undisputed facts need only be summarized here.

Under the farmout agreement with Continental Oil Co. and Gulf Oil Corp. (the farmoutors), American Quasar Petroleum Co. (Quasar) was required to drill a test well.1 Quasar bore sole responsibility for drilling...

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