Armstrong

After a bench trial, the superior court ruled an operator breached its obligations under an oil and gas operating agreement. The operator appeals, claiming that the breach of contract claim was barred by the statute of limitations in subdivision 1 of section 337 of the Code of Civil Procedure, and that lay testimony essential to the calculation of the amount of damages was based on hearsay evidence and was inadmissible. The operator asserts the breach of contract cause of action accrued when it rejected in writing the nonoperator’s interpretation of how to calculate its net revenue interest under the contract.

In the published portion of this opinion, we hold that the monthly payments and deliveries made to the nonoperator for its net revenue interest in oil and gas production were divisible from one another and, therefore, the claims relating to monthly performance occurring within four years of the time of filing the complaint were timely. In the unpublished portion of this opinion, we hold that substantial evidence supports the trial court’s findings as to the amount of damages resulting from the breach of contract. Accordingly, the judgment will be…