A force majeure clause in an oil and gas lease excuses or suspends the lessee's performance — and can keep the lease from terminating — when events beyond the lessee's reasonable control (such as acts of God, war, certain regulatory or supply constraints) prevent operations, though courts generally read these clauses narrowly and by their specific wording rather than as a blanket escape from obligations.
An oil and gas lease runs on deadlines — drill or produce within the term, or it ends. A force majeure clause is the pressure valve for events the lessee genuinely could not control. When it applies, it can suspend the lessee's obligations and prevent the lease from lapsing during the disruption, effectively pausing the clock.
"Force majeure" means "superior force." The point is to protect the lessee from losing the lease because something outside its power — not its own inaction or a bad market — stopped it from performing.
The events covered are whatever the clause lists, which is why the wording matters so much. Common examples include acts of God (hurricanes, floods), war or civil unrest, fires, and certain governmental or regulatory actions — permit moratoria, orders that halt operations. Many clauses also reach labor disputes or an inability to obtain materials or equipment, though these are more contested.
Crucially, most clauses require that the event be beyond the lessee's reasonable control and that it actually prevented performance — not merely made it less profitable.
Courts across producing states tend to construe force majeure narrowly. Several limits recur: low commodity prices and ordinary market conditions generally do not qualify — a lessee cannot use force majeure to sit on a lease because drilling is uneconomic; the event usually must be one the clause specifically lists or fairly encompasses; and many states require the lessee to show it could not have avoided or overcome the problem with reasonable diligence.
Some clauses also require notice to the lessor, and courts may ask whether the lessee resumed operations promptly once the impediment passed. The upshot: force majeure is real but not a blanket excuse, and a strained invocation of it is frequently litigated.
For an owner, force majeure is worth understanding because it can be the reason a lease you thought had lapsed is still, arguably, alive. If a lessee claims force majeure to hold a non-producing lease, whether that claim is valid depends on the clause's wording, the nature of the event, and your state's law — a good moment for a qualified oil and gas attorney to weigh in.
When leased minerals are affected by a force majeure claim, the status of the lease is part of what a buyer evaluates. Buckhead Energy factors lease status, including disputed force majeure, into how it values leased minerals. This page is educational information, not legal advice.
Cessation of Production Clause
Oil & Gas Encyclopedia — all terms
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
A provision that excuses or suspends the lessee's performance — and can keep the lease from terminating — when events beyond its reasonable control prevent operations, such as acts of God, war, fire, or certain regulatory actions. It effectively pauses the lease's deadlines during the disruption.
Generally no. Courts across producing states read force majeure narrowly, and ordinary market conditions or uneconomic prices usually do not qualify. A lessee cannot typically use force majeure to sit on a lease simply because drilling is not profitable.
Whatever the clause lists — commonly acts of God (hurricanes, floods), war or civil unrest, fire, and certain governmental or regulatory actions like permit moratoria. The event must generally be beyond the lessee's reasonable control and must actually have prevented performance.
Narrowly, and by their specific wording. Many states require that the event be one the clause lists or fairly encompasses, that it truly prevented performance, and that the lessee could not have overcome it with reasonable diligence. Some clauses also require notice and prompt resumption.
It can, if validly invoked. Whether a force majeure claim holds depends on the clause's wording, the nature of the event, and state law. If a lessee claims force majeure on a lease you thought had lapsed, it is worth a qualified oil and gas attorney's review.
Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.
Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.
Get My Offer Now