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Tide Water Associated Oil Co. v. Stott
Court of Appeals for the Fifth Circuit (1946) | 159 F.2d 174; 1946 U.S. App. LEXIS 3275
TL;DR: A lessee conducted recycling operations on adjacent lands, causing drainage from a lessor's tract. The court held the lessee was not liable because it had offered the lessor a fair opportunity to join a unitization plan, which the lessor refused.
Legal Significance: Establishes that a lessee's duty of good faith to a non-consenting lessor is satisfied by offering a fair and reasonable unitization plan. A lessor cannot refuse to cooperate for mutual protection and then claim damages from the lessee's prudent operations.