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55-224. Same; presumption of breach of covenant, when. In any action in which relief is sought based upon breach or violation by a lessee of an implied or expressed covenant of reasonable exploration or of reasonable development of lands covered by an oil, gas or oil and gas lease held by production, if the party who seeks such relief produces competent evidence that: (a) At the time such action is commenced there is no mineral production pursuant to such lease from a subsurface part or parts of the land covered thereby with respect to which such relief is sought and (b) initial oil, gas or other mineral production on the lease commenced at least 15 years prior to the commencement of such action, a presumption shall arise that the lessee has breached and violated such covenant insofar as it relates to such subsurface part or parts of land.

History: L. 1983, ch. 181, § 2; April 14.

Law Review and Bar Journal References:

"Deep Horizons—Legislative Shifting of the Burden of Proof in Implied Covenant Cases," John H. Lundgren, 24 W.L.J. 30 (1984).

"Oil and Gas: The Corporation Commission's Role in Evaluating the Prudence of Operations in Statutory Unitization," Richard A. Forster, 24 W.L.J. 191 (1984).

"Developing the Unexplored Deep Horizons Act," Terry Torline, 26 W.L.J. 471, 481, 483 (1987).

CASE ANNOTATIONS

1. Cited; analysis of cancellation of oil and gas lease for failure to begin exploration when no notice given. Lewis v. Kansas Production Co., 40 K.A.2d 1123, 1125, 199 P.3d 180 (2009).


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