Lewis v. KANSAS PRODUCTION CO., INC.

Pierron, J.:

After a bench trial, the district court terminated Kansas Production Company’s (KPC) oil and gas lease on David and Karen Lewis’ land for KPC’s breach of the implied covenant to explore and develop the lease. The court found that KPC received no demand for development before this lawsuit was filed. It also found that KPC’s failure to explore or develop the land for 6 years negated the prior demand requirement for cancellation. KPC appeals the termination. It seeks remand for an order of conditional cancellation to allow it a reasonable time to comply with the implied covenant. We…