Defending (and Preventing) Lease Cancellation Lawsuits
As leasing and drilling increase, so have lawsuits by mineral owners seeking to cancel existing leases. More often than not, those suits allege that existing wells have ceased producing in paying quantities, and therefore the leases are no longer HBP.
Our presentation will discuss how operators can defend against lease cancellation lawsuits, including factors that Oklahoma courts consider when determining whether a well is producing in quantities sufficient to hold a lease. We will also discuss how operators can resolve such disputes outside of court; and how to prevent a lease cancellation suit by determining whether an existing lease is HBP prior to purchasing it.