Superior Oil Co. v. Devon Corp.

I respectfully dissent. In my view, the District Court correctly terminated the portions of the Superior lease outside the Will-son Ranch Unit because Superior breached its implied covenant to further develop.

I agree with the majority that this action is governed by Nebraska law and that the Nebraska courts would apply the implied covenant to further develop. I do not agree that the District Court erred in holding that notice was not required prior to the termination of the lease.

The requirement of notice is grounded in equitable principles and is designed to prevent unnecessary forfeitures…