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17 Okla. City U. L. Rev. 413 (1992)
The Michelangelo of the Oklahoma Oil & (and) Gas Industry: The Cessation of Production Clause, Spontaneous Lease Terminations, and Cyclical or Marginal Production Problems

handle is hein.journals/okcu17 and id is 423 raw text is: THE MICHELANGELO' OF THE OKLAHOMA OIL & GAS INDUSTRY: THE CESSATION OF PRODUCTION CLAUSE, SPONTANEOUS LEASE TERMINATIONS, AND CYCLICAL OR MARGINAL PRODUCTION PROBLEMS I. INTRODUCTION Traditionally, oil and gas leases have been construed strict- ly against the lessee and in favor of the lessor! This judicial gloss satisfied a number of goals, one of which was to improve the balance between the bargaining position of the lessor against the stronger bargaining position of the lessee.' The standard remedy in lease disputes was almost always termina- tion. However in the last few decades, the pendulum has be- gun to swing the other way, with a trend away from strict con- struction and automatic termination of the lease toward a more equitable posture balancing both parties' interests in the lease.' This swing has been very evident in Oklahoma, as the courts balance a variety of factors to determine whether a lease should be terminated, with no one factor playing an overriding part in the decision.' Given this move away from the traditional automatic termi- nation remedy, a new trend has developed in distinct conflict with these equitable considerations. Within the last twelve 1. A reference to the recent computer virus that plagued the country. See infra text and accompanying notes 222-227. 2. Vincent M. Waldman, The Demise of Automatic Termination, 54 OKLA. B.J. 2767 (1983). 3. 1l Waldman cites the following reasons as justifications for the rule: This rule has been justified in a variety of ways: as a means of safe- guarding lessors against speculators' holding unfruitful interests in their land, as a way of preventing drainage to neighboring lands; because les- sees write the leases; because lessors are bound by the leases while lessees can withdraw simply by taking no action; and as a means of encouraging development and discouraging delay. Id. 4. 1d. 5. Id. 6. Id at 2767-68. 413