Testimony began Monday in a trial that could decide whether gas drilling will be allowed at Rayzor Ranch.

The trial, which was set to continue this morning, centers on whether Fort Worth-based Range Production Co. still has the right to drill at the west Denton mixed-use development. The Denton City Council last month approved a permit allowing natural gas drilling at the site, but production is on hold until the lawsuit is resolved.

Officials with Allegiance Hillview LP, the company behind Rayzor Ranch, say the right to drill on the property ended this summer under a 2008 land-use agreement. Range officials say they missed a July 11 deadline to start drilling for reasons beyond their control, including a longer-than-expected city review process and unexpected neighborhood opposition.

Attorneys for both sides reiterated their positions Monday before Denton County state district Judge L. Dee Shipman, who is hearing the non-jury trial.

“This case is really about procrastination,” said Allegiance attorney Richard Illmer, who argued that Range simply waited too long to apply for city permits. Range missed the deadline even though city planners agreed to fast-track the application last spring, Illmer said.

Range attorneys say the company did its best to meet the deadline. In court filings, they argue that the land-use agreement allowed the drilling deadline to be extended if the city failed to issue permits, “so long as such event is beyond the reasonable control” of the applicant.

“We diligently pursued filing of our permits,” Range landman Jody Watkins testified. The company missed the deadline because of “unforeseen events,” he said.