146 oil and gas leases covering 102,000 acres of nonproducing properties in Colorado, Montana, New Mexico, Oklahoma, Utah, and Wyoming.  Under both the federal and state leases at issue, the lessees were granted the exclusive right to drill for oil and gas on the leased acreage.  In lieu of pursuing production, the lessees could retain the leases by paying an advance annual delay rental of 50 cents per acre.  The lessees were not obligated to drill or pay.  But each lease expressly provided that, absent production, failure to pay the advance annual rental on or before the anniversary date would automatically terminate the lease.


4
It is undisputed that there were no wells on the leased lands capable of producing oil and gas in paying quantities.evaporated upon receipt of the written notice of termination, and neither the mere filing of the arrangement petition nor the referee's order purporting to 'extend' the grace period for cure of the default nor a mystical combination of both could effect their recondensation.


22
". . . .


23
".... The filing of an arrangement petition under Chapter XI does not divest the debtor in possession of its contractual rights, but it likewise does not provide a blanket exemption from contractual obligations.  Debtor's failure to satisfy those obligations justified Products' termination of the agreement."


24
Id. at 176-77.


25
In the present case, the debtors failed to satisfy their contractual obligation to make the delay rental payments on their oil and gas leases.  The leases lapsed by their own terms.  The bankruptcy court