Does the term "by the lessee" in a Leased Offshore Leased Agreement apply to drilling operations on the lease?
Alberta, Canada
The following excerpt is from Durish v. White Resource Management Ltd., 1998 ABQB 801 (CanLII):
35. Even if "by the lessee" is absent, reasonable construction of the lease calls for performance of drilling operations by the lessee (Hughes v. Cantwell et al., 55 Oil & Gas Reptr. 354 (Tex. Civ. App. 1976)). The lease purports to grant to the lessee the exclusive right to drill on the premises. Any provision with respect to drilling operations on the land necessarily refers to drilling operations by the lessee.
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