Co-author Rusty Tucker
In Mayo Found. For Med. Educ. & Research v. BP Am. Prod. Co. a United States District Court considered the circumstances under which a lessor can withold its consent to assign an oil and gas lease.
A lease from Barbara Lips* to Alpar Resources included Section 157 and other lands. Paragraph 7 reserved to Lips an absolute veto right over any assignment of Alpar’s interest in the Lease.
An amendment to the lease replaced the original Paragraph 7 with this less-restrictive clause:
“The rights and obligations of the Lessee hereunder are not assignable or transferable in any respect by it, except upon the written approval of [Mayo], which approval shall not be unreasonably withheld.”
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