Montana § 77-3-425 - Dry Hole Clause
Full text of Montana Montana Code Annotated § 77-3-425 — Dry Hole Clause, with citation guidance and answers to common questions.
§ 77-3-425. Dry Hole Clause
Dry hole clause. If the first well drilled is a dry hole and if a second well is not commenced on the land covered by the lease before the next anniversary of the lease following the completion of the well, the lease may be terminated by the board unless the lessee, on or before such anniversary, resumes payment of any delay drilling penalties imposed by the board. Upon the resumption of payment of any required delay drilling penalties and their continued payment, the lease continues in force during the primary term as though there had been no interruption in the delay drilling penalty payments.
Source: official Montana text · Last verified 2026-08-27
Frequently Asked Questions About Montana § 77-3-425
What does Montana Code Annotated § 77-3-425 cover?
Section 77-3-425 ("Dry Hole Clause") is part of the Montana Code Annotated, the codified statutory law of Montana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Montana § 77-3-425?
A common citation format is "Montana Code Annotated § 77-3-425" (Montana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Montana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Montana official source linked on this page or consult a licensed Montana attorney.
How does Montana § 77-3-425 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Montana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Montana.