Most oil and gas leases contain a force majeure clause. It's a provision that excuses the operator from performing their obligations under the lease when events beyond their control make performance impossible or impractical. If you've ever wondered why a lease didn't expire even though the operator wasn't drilling, force majeure may be the reason.

What Force Majeure Means

"Force majeure" is French for "superior force." In a legal context, it refers to extraordinary events that prevent a party from fulfilling a contract. In oil and gas leases, the clause typically lists specific events that qualify:

The exact language varies by lease. Some clauses are broad ("any cause beyond the reasonable control of the lessee"). Others list specific events and exclude everything else.

How It Affects Your Lease

The primary effect is on the lease term. If force majeure prevents the operator from drilling within the primary term, the clause may:

This means a lease that should have expired because the operator didn't drill might still be alive if the operator can claim force majeure.

When It Became Relevant

Force majeure clauses received intense attention during the COVID-19 pandemic. Oil prices collapsed, operations shut down, and operators across the country invoked force majeure to avoid lease expirations. Some mineral owners challenged these claims, arguing that low commodity prices alone don't constitute force majeure.

Courts have generally held that price drops by themselves are not force majeure events. In TEC Olmos, LLC v. ConocoPhillips Co., the court ruled that market downturns are not unforeseeable events. Similarly, in Valero Transmission Co. v. Mitchell Energy Corp., the court declined to excuse performance when the force majeure clause didn't mention economic conditions. The operator must show that an external event actually prevented them from operating, not just that operating became unprofitable.

What to Look For in Your Lease

When reviewing a lease, check the force majeure clause for:

Specificity. Does it list specific events, or is it a catch-all? Specific language gives you more certainty about what qualifies.

Duration limits. Some clauses limit how long force majeure can extend the lease (e.g., "not to exceed 12 months"). Without a limit, the operator could theoretically claim force majeure indefinitely.

Notice requirements. Does the operator have to notify you when invoking force majeure? A good clause requires written notice within a specified timeframe.

Scope. Does force majeure only apply to drilling operations, or does it also excuse the payment of delay rentals and other obligations?

Gibson Dunn published a helpful force majeure primer and flowchart for analyzing whether a claim is valid under your lease terms.

Negotiation Points

If you're negotiating a new lease, you can push for:

These protections ensure that force majeure is used for genuine emergencies, not as a tool to hold your lease indefinitely without activity. For more on lease provisions that protect mineral owners, see our posts on Pugh clauses and what to check before signing.