Lack Of Proof That Lessee Failed To Reasonably Explore and Develop Minerals Means Lease Not Cancelled.

The plaintiffs own land subject to an oil and gas lease that the defendant holds.  The defendant did not drill for oil or gas for over 30 years based on a determination that doing so would not be cost effective.  The plaintiffs argued that the defendant breached an implied duty to develop the land and, as a result, the lease should be terminated.  The trial court granted judgment as a matter of law to the defendant because the plaintiffs failed to present substantial evidence showing that the defendant breached the implied covenant to prudently develop.  On appeal, the court affirmed.   The simple fact that the defendant admitted that it would not be commercially feasible to drill on the plaintiffs' land does not automatically require lease cancellation.  The burden is on the plaintiff to prove, by substantial evidence, that the defendant to breach the implied covenant to prudently develop the leased land.  That burden was not carried.  Novy v. Woolsey Energy Corp., et al., 327 P.3d 1052 (Kan. Ct. App. 2014).