The Crestone Case: Motivations and Implications

Commercial Discovery Rule vs. Actual Production Rule Oil and gas leases generally include two terms.[1] The first is a fixed primary term within which the lessee holds the mineral rights but is not obligated to produce.[2] Should the primary term of a lease end without any production, the lease will expire. The secondary term of an oil and gas lease begins upon production and continues so long as the production continues.[3] In essence, production is essential to the extension of an oil and gas lease Continue reading →