Court Limits Right-to-Cure Provision, Addresses Failure of Lease Consideration

摘要

In January and February 2008, Irish Oil and Gas, Inc. (Irish Oil) entered into oil and gas leases with Gerald C. Riemer (Riemer) and other family members (collectively the Riemers) covering a common tract of land. Irish Oil and Gas, Inc. v. Riemer, 794 N.W.2d 715, 716 (N.D. 2011). A side letter agreement accompanied the leases, providing that Irish Oil would pay $ 160.00 per net mineral acre for a paid-up lease with a five-year primary term and a 1/6 royalty. Id. The letter agreement also provided: Within 60 days upon receipt of the signed lease, and subject to approval of title, with right of payment extension of 30 additional days, in the event of title curative issues, from expiration of original 60 days, you will receive a check in the amount of $10,640.00. On January 15,2009 you will receive the balance of bonus consideration in the amount of $10,640.00.