Implied Covenant Of Further Exploration

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Implied Covenant Of Further Exploration

 

 The implied covenant of further exploration “concerns the obligation to drill in potentially productive, but yet unproved, geological formations or strata. . . This obligation arises chiefly from the policy against allowing the lessee to hold a valuable mineral lease for speculative purposes." Meaher v. Getty Oil Co., 450 So.2d 443, 446 (Ala. 1984).  In Getty, the Alabama Supreme Court avoided finding that the implied covenant of further exploration was unnecessary in Alabama, since the facts before the court concerned formations that were proven.

Copyright 2011 by Edward G, Hawkins. All rights reserved.