We've reported previously on the NYT's efforts to find environmental and economic issues in the oil patch (see here, e.g.). Now it seems that they want to complain about oil and gas leases: "Americans have signed millions of leases allowing companies to drill for oil and natural gas on their land in recent years. But some of these landowners — often in rural areas, and eager for quick payouts — are finding out too late what is, and what is not, in the fine print."
In Northup Properties, Inc. v. Chesapeake Appalachia, LLC (Case No. 08-5718), the United States Court of Appeals for the Sixth Circuit recently held that delay rental payments maintained an oil and gas lease despite the fact that the lease property went undeveloped for nearly forty years (applying Kentucky law). Notably, the court found that the lease was unusual in that it did not contain the typical habendum clause (e.g., it did not use the "as long as" or "so long as" language commonly found in lease term provisions).
[Note that the court did not address the impact of the producer's failure to timely pay the delay rental at one point, however.]
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