Does the term “by the lessee” in an oil and gas lease extend the lease?

Alberta, Canada


The following excerpt is from Durish v. White Resource Management Ltd., 1998 ABQB 801 (CanLII):

32. If the words "by the lessee" are present in an oil and gas lease, it removes all doubt as to who is required to drill to satisfy the drilling requirement and thereby extend the lease. Even without the words, however, the lessee is still likely the party who must complete the drilling. This is so because of the purpose of the oil and gas lease: “Such contracts are almost universally held to be made for the general purpose of developing the premises by the lessee, and the uniform tendency on the part of the courts has been to place such a construction on their terms as will carry out the terms, intent, and purpose of the agreement.” Earp v. Mid-Continent Petroleum Corporation 167 Okla. 86, 26 P.2d 855, (1933) at 864

Other Questions


Does the term "by the lessee" in a Leased Offshore Leased Agreement apply to drilling operations on the lease? (Alberta, Canada)
Can a member of a resort club lease a 30-45-60-year lease to a residential unit at a resort resort club where the lease terms are 3 years? (Alberta, Canada)
In which a new lease has been substituted for a existing lease, can the landlord continue to distrain under the original lease? (Alberta, Canada)
Can a lease holder be ejected from a commercial lease because the lease is not secured by the lessor, but by the assignee of a mortgage? (Alberta, Canada)
Does a term in the lease stating that a breach by the tenant is determined upon any breach of the lease constitute a proviso for re-entry? (Alberta, Canada)
Is there any difference between a landlord and a purchaser of a lease where the lease is registered as an actual notice rather than a bill of sale? (Alberta, Canada)
Is a lease for petroleum and natural gas a lease? (Alberta, Canada)
Is a plaintiff's estate entitled to receive payments from the operators of surface lease agreements? (Alberta, Canada)
In what circumstances will a Master grant an order to extend time for service of a Statement of Claim? (Alberta, Canada)
Can the date of an expert report be extended to August 2, 2015? (Alberta, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.