The Oil and Gas Lease in Canada

Vernon V. Kakoschke was a lawyer in the law department of Canadian Pacific.

For more than 13 years, the first edition of this book has been the definitive legal guide for lawyers practising in the field of oil and gas law in Canada. The first edition received the Canadian Petroleum Law Foundation Award for significant contribution to legal literature.

The second edition has been completely revised and updated to take account of developments in the law since 1972. The author, a senior partner in a Calgary law firm, was personally involved in many of the decided cases cited in the book and so is able to offer some valuable insight into the development of the case law. He often goes beyond a scholarly analysis of the cases and provides practical advice on some thorny legal issues.

In general, an oil and gas lease is a standard-form document, filled with fine print, developed by oil company lawyers. It is, therefore, heavily weighted in favour of the lessee. This book contains a clause-by-clause analysis of the fine print that most lessors never read, let alone understand. It points out the areas that should be of particular concern to lessors and how the wording might be changed to achieve a more equitable result. Indeed, the author has developed a model lease (found at the end of the book), which strikes a balance of fairness between the position of lessor and lessee. This model lease will prove to be a valuable precedent in years to come for lawyers drafting oil and gas leases.

One of the chapters, subtitled “The Lessor’s Guide to Lease-Breaking,” provides an analysis of the various soft spots in the lease that might entitle the lessor to get out of the deal. On the other hand, other chapters sympathize with the position of the lessee and recommend some remedial drafting changes that lessors could make to their documentation in order to secure their position. There are also some useful tips for professional landmen, who act on behalf of oil companies in negotiating for and obtaining signed leases. In short, this book is an essential reference guide for anyone in the oil industry involved with the leasing of mineral rights.