Both Eyes Open or One Eye Closed: Does the Reasonable and Prudent Operator Standard Handicap Mineral Lessees in the Prevention of Drainage?
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This comment briefly discusses the origins of implied covenants, correlative rights, and Rule 37. It examines the duty of a lessee under the regime of each in the context of loss of the minerals owners’ estate to adjacent lands. Specifically, it focuses on the elements of breach of the implied covenant to prevent drainage and the nature and sufficiency of the evidence needed to prove such. It explores possible courses of action for a lessee facing drainage and the potential rationales behind each. Lastly, it addresses the implied covenant to seek favorable administration action beyond Amoco.