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In re Great Plains Petroleum, Inc.

117 IBLA 130 (1990)

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In re Great Plains Petroleum, Inc.

Interior Board of Land Appeals

117 IBLA 130 (1990)

Facts

In July 1973, Great Plains Petroleum, Inc. (GPPI) leased a tract of federal land for a ten-year term and so long thereafter as GPPI produced oil or gas on the land in paying quantities. GPPI’s last producing well on the land ceased production in October 1987. In April 1988, the Montana State Office of the Bureau of Land Management (BLM) notified GPPI in writing that production had ceased and that if production did not restart within 60 days the lease would terminate. GPPI informed BLM that the well was still capable of producing, but that GPPI had filed for bankruptcy and was attempting to restart production. GPPI was unable to restart production and did not formally respond to the April 1988 notice within 60 days. Accordingly, BLM declared the lease terminated. GPPI appealed to the Interior Board of Land Appeals.

Rule of Law

Issue

Holding and Reasoning (Hughes, J.)

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