55-224. Same; presumption of breach of covenant, when.
55-224
55-224. Same; presumption of breach of covenant, when.In any action in which relief is sought based upon breach orviolation by a lessee of an implied or expressed covenant of reasonableexploration or of reasonable development of lands covered by an oil, gasor oil and gas lease held by production, if the party who seeks such reliefproduces competent evidence that: (a) At the time such action is commencedthere is no mineral production pursuant to such lease from a subsurfacepart or parts of the land covered thereby with respect to which such reliefis sought and (b) initial oil, gas or other mineral production on the leasecommenced at least 15 years prior to the commencement of such action, apresumption shall arise that the lessee has breached and violated such covenantinsofar as it relates to such subsurface part or parts of land.
History: L. 1983, ch. 181, § 2; April 14.