The Oklahoma Supreme Court’s decision in Hall v. Galmor, 2018 OK 59, 427 P.3d 1052, illustrates the decisive role of the Oil & Gas Appraisal Expert Witness in lease-termination disputes. The opinion ultimately redefined Oklahoma’s “paying quantities” test for oil and gas production, with expert valuation analysis at the center of the court’s reasoning.
Background and Parties
The dispute centered on thirty oil and gas leases in Beckham County, Oklahoma. The lessor, Hall, sought to terminate the leases on the ground that the wells had ceased producing in “paying quantities,” a longstanding requirement under Oklahoma law for keeping a mineral lease alive past its primary term. The lessee, Galmor, contended that production was sufficient to maintain the leasehold.


