THE CONTINUING ADVENTURES OF THE OIL AND GAS LEASE

Abstract

Recent developments in the Supreme Court of Canada suggest the possibility of two new interpretations of the oil and gas lease. The first implies a more liberal interpretation of the lease itself, and the second the removal of estoppel as a means of reviving a defunct lease. This article reviews the law relating to termination of leases, which reflects the aforementioned developments. The author concludes, on the issue of lease interpretation, that either state of the law is acceptable, but consistency one way or the other is needed. He applauds the removal of estoppel on the basis that it is not an appropriate remedy between oil and gas lessees and lessors.