The Amoco Case: The Implied Covenant to Seek Favorable Administrative Action

Abstract

Examines the newly emerged legal theory from Amoco Production Co. v. Alexander, the implied covenant to seek favorable administrative action. The author believes this covenant came about as the result of increased regulation by administrative agencies and a shift toward judicial protection of lessors when the lease is silent. The author opines that the most effective solution would be the legislative enactment of a compulsory field-wide unitization of leases.