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BAYTIDE PETROLEUM v. CONTINENTAL RESOURCES

No. 106,117.

231 P.3d 1144 (2010)

2010 OK 6

BAYTIDE PETROLEUM, INC., Plaintiff/Appellant, v. CONTINENTAL RESOURCES, INC., Defendant/Appellee, and The Aline Oswego Unit, Intervenor/Appellee.

Supreme Court of Oklahoma.

Rehearing Denied May 3, 2010.

Attorney(s) appearing for the Case

Richard D. Gibbon, Gibbon, Barron & Barron, PLLC, P. Craig Bailey, Young Bowden Baily, P.C., Tulsa, OK, for plaintiff/appellant.

Glenn Allen Devoll, Julia Christina Rieman, Enid, OK, for defendant/appellee and intervenor/appellee.

WATT, J.:

¶ 1 We granted certiorari to consider an issue of first impression: whether an oil and gas lease sought to be terminated for failure to produce in paying quantities during the secondary term remains effective until the lease has been judicially cancelled? We hold that it is not the court order which terminates the lease. Rather, it is the failure to produce in paying quantities under the habendum clause during the lease's secondary term. In the instant...

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