Ballard v. Devon Louisiana Corp., No. 10-20497 (5th Cir. 2012)
Annotate this CaseBallard, successor in interest to Kilroy, sued Devon, successor in interest to Wise Oil, for breach of a provision in an American Association of Petroleum Land Men (AAPL) Model Form Operating Agreement (Operating Agreement) that was an exhibit to and incorporated by reference in a May 1971 Farmout Agreement (collectively, Joint Operating Agreement or JOA) between Kilroy and Wise Oil. Ballard's lawsuit turned on the interpretation of one sentence in the multi-paragraph "Area of Mutual Interest" (AMI) provision of the Operating Agreement. The court held that, because the entire AMI provision - including its acquisition provisions and its surrender provisions - expired before the claims asserted by Ballard arose, Devon had not breached its contract with Ballard, and the district court's summary judgment was proper.
The court issued a subsequent related opinion or order on May 8, 2012.
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