Baytide Petroleum, Inc. v. Continental Resources, Inc.

WATT, J.:

{1 We granted certiorari to consider an issue of first impression: whether an oil and gas lease sought to be terminated for failure to produce in paying quantities during the secondary term remains effective until the lease has been judicially cancelled? We hold that it is not the court order which terminates the lease. Rather, it is the failure to produce in paying quantities under the ha-bendum clause during the lease's secondary term. In the instant cause, the lease terminated by its own terms before the Alfalfa County court issued its order. 1

12 Our determination that the date of…