Oil and Gas Leases: Arbitration Clause

摘要

In August 2000, Gray and Talisman execute an oil and gas lease that contains a five year primary term with an option to renew and an arbitration clause. The lease also contains a provision requiring the lessee to "provide a document cancelling the lease" should the lease terminate or expire. In February 2005, Gray extends the primary term for an additional three years and shortly thereafter Talisman's predecessor in interest applies for a permit to drill a well on lands pooled with the Gray lease. In August 2010, Gray serves Talisman with a notice that the lease terminated in August 2005. After filing this lawsuit, Talisman moves to compel arbitration under the lease.