Montana Statutes
§ 77-3-422 — Lease Extension Clause
77-3-422 . Lease extension clause. If oil or gas is not being produced from the leased premises at the expiration of the primary term of the lease but the owner of the lease is then engaged in drilling on the premises for oil or gas, then the lease continues in force so long as such drilling operations are being diligently prosecuted. If oil or gas is recovered from any such well drilled or being drilled at or after the expiration of the primary term of the lease, the lease continues in force so long as oil or gas in paying quantities is produced from the leased premises.
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Legislative History
En. Sec. 2, Ch. 108, L. 1927; amd. Sec. 1, Ch. 193, L. 1931; amd. Sec. 1, Ch. 171, L. 1933; re-en. Sec. 1882.2, R.C.M. 1935; amd. Sec. 1, Ch. 109, L. 1941; amd. Sec. 1, Ch. 91, L. 1943; amd. Sec. 1, Ch. 128, L. 1945; amd. Sec. 1, Ch. 122, L. 1953; amd. Sec. 84, Ch. 428, L. 1973; R.C.M. 1947, 81-1702(part).
Nearby Sections
15
§ 77-3-101
Definitions§ 77-3-103
Prospecting Permits Authorized§ 77-3-104
Notice Of Permit Or Lease Approval§ 77-3-105
Assignment Of Leases Or Permits§ 77-3-107
Through 77-3-110 Reserved§ 77-3-111
Applications For Mining Lease§ 77-3-112
Examination Of Lands Prior To Leasing§ 77-3-113
Quantity Of Lands Covered By Lease§ 77-3-115
Lease Provisions§ 77-3-116
Royalty Provisions§ 77-3-117
Modification Of Lease Provisions