In Re Great Plains Petroleum, Inc.

117 IBLA 130 (1990)

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Nature of the Case

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Facts

Lease NDM 25321 was issued effective July 1, 1973, for a period of 10 years and so long thereafter as oil or gas was produced in paying quantities. On April 11, 1988, D notified P that records showed no production from the lease since October 1987. D advised that, unless the lease contained a well capable of producing hydrocarbons in paying quantities, the lease would be considered to have terminated effective October 31, 1987. P had to furnish adequate test data showing the well's current potential production within 60 days of receipt of the notice and continue to produce the lease. When notified, P had told D that the well was shut in and that P had filed for bankruptcy. The BLM employee reported that although the representative had added that the well was capable of producing, P had not submitted any data. In its decision dated August 3, 1988, D, referring to the report of the District Office, stated that the last producible well on the leasehold ceased production on October 31, 1987. D concluded that, since there was no production to continue was terminated by cessation of production effective October 31, 1987. P appealed.