The Renaissance of Law in the Law of Oil and Gas: The Contract Dimension

Abstract:     
This article is a critical examination of the discipline we call "oil and gas" law. Many of the flaws associated with this "specialized" body of law relate to its "special" status. Jurisprudential flaws have developed as courts depart from basic contract, property, or tort law in pursuit of "oil and gas law" concepts. The phenomenon is not limited to oil and gas law but can occur in any "law of" setting. This article illustrates the problems associated with oil and gas law by analyzing judicial approaches to recognizing and applying "implied covenants" under the oil and gas lease. By comparing the experience and outcomes under the oil and gas rule with the outcome under a contract law analysis, it is possible to evaluate whether a specialized "oil and gas" rule is necessary or advisable.

Number of Pages in PDF File: 31

Keywords: adhesion contract, damages, deduction of costs, implied covenant, implied in fact, interpretation, good faith, implied in law, jurisprudence, marketing covenant, oil and gas, oil and gas lease, omitted term, royalty, royalty calculation, rules of construction, unconscionability

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