The competition for oil and gas leases has resulted in an increase in the use of top leases to secure oil and gas leasehold estates. Top leases which are found to violate the Rule against Perpetuities could result in the loss of millions of dollars to the lessee. The author examines top leasing in light of the Rule against Perpetuities and concludes that absent a savings clause, such leases violate the Rule. A savings clause is proposed which would save an otherwise invalid lease thereby circumventing the harsh application of the Rule.
J. Suzanne Hill
Top Leases and the Rule Against Perpetuities,
10 Pepp. L. Rev.
Available at: http://digitalcommons.pepperdine.edu/plr/vol10/iss4/4