About the Authors:
maintained by continuous drilling operations.
Eli Kiefaber Eli Kiefaber is a partner with Kiefaber & Oliva LLP. Eli focuses his practice on oil and gas matters, including acquisition and divestiture of oil and gas assets, title opinions, joint
Additionally, the Court relied upon Section 9-07-16, N.D.C.C., which provides: “When a contract is partly written and partly printed, or when part of it is written or printed under the special directions of the parties and with a special view to their intention and the remainder is copied from a form originally prepared without special reference to the particular parties and particular contract in question, the written parts control the printed parts and the parts which are purely original control those which are copied from a form and if the two are absolutely repugnant the latter must be disregarded insofar as such repugnancy exists.” As a result, because the Pugh clause was not part of the form lease, Section 9-07-16, N.D.C.C. required that the Pugh clause control over the habendum or continuous drilling clauses. Johnson , 918 N.W.2d at 63. Thus, the Pugh clauses terminated the lease as to all lands not included within the three units producing in paying quantities at the expiration of the three- year primary term. The decision in Johnson underscores the importance of careful drafting and review of oil and gas leases and other instruments conveying interests in oil and gas rights. Failure to carefully draft the Pugh clause in Johnson rendered the continuous drilling clause permitting the lessee to maintain an oil and gas lease beyond the primary term meaningless. Parties to an oil and gas lease must consider how any additional terms or provisions added to a form oil and gas lease will interact with the remaining provisions in the lease.
operating agreements, federal leases, pooling and unitization issues. Eli is licensed to practice law in Texas, Oklahoma, Colorado and Ohio, is a regular speaker on issues relating to the development of unconventional shale plays and has given a variety of presentations regarding legal issues relating to oil and gas development. Eli earned his B.A from Kenyon College and his J.D., with honors, from Marquette University Law School.
Zachary Oliva Zachary Oliva is a partner with Kiefaber & Oliva LLP. Zack focuses his practice on energy and corporate law. He regularly assists clients in the drafting of oil and gas title opinions, purchase
EX T EX Division Order Services, LLC 4865Ward Road, Suite 200 Wheat Ridge, CO 80033 303-463-8799 303-463-8808 extexllc.com Fax Division Orders, Revenue Distribution, 1099’s Dennis Pade Boyd Sanstra Chris Pennels President Vice President Vice President and sale agreements and contract interpretation. Additionally, he assists clients with the negotiation, drafting and review of business formations, contracts and service agreements. Zack earned his B.A. from The Ohio State University and his J.D. from Capital University Law School. He is licensed to practice in New Mexico, Ohio and Texas.
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G r o w t h T h r o u g h E d u c a t i o n - O c t o b e r / N o v e m b e r / D e c e m b e r 2 0 1 9
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