State of Alaska, Department of Natural Resources, Appellant and Cross-Appellee v. Alaskan Crude Corporation And…

Summary

The court held that DNR materially breached the oil-and-gas lease by mistakenly declaring it expired while drilling activity required an extension, but that DNR cured the breach by promptly reinstating the lease. The reinstatement letter reasonably interpreted the lease's diligence, permitting, and production requirements, and substantial evidence supported DNR's later termination because White did not resume drilling with reasonable diligence. The court also declined to remand for damages because no agency decision on damages existed and White had not specifically sought damages in the administrative proceedings.