This form is a Texas Lease agreement wherein Lessor grants, leases, and lets exclusively to Lessee the lands described within for the purposes of conducting seismic and geophysical operations, exploring, drilling, mining, and operating for, producing and owning oil, gas, sulfur, and all other minerals whether or not similar to those mentioned (collectively the oil or gas ), and the right to make surveys, lay pipelines, establish and utilize facilities for surface or subsurface disposal of salt water, construct roads and bridges, dig canals, build tanks, power stations, power lines, telephone lines, and other structures on the Lands, necessary or useful in Lessee's operations on the Lands or any other land adjacent to the Lands. This lease form also provides for pooling.
The Brownsville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific provision within the contracts of oil and gas leases in the Brownsville area of Texas. This provision outlines the guidelines and conditions for shutting in the production of oil or gas wells, as well as the royalty payments to be made during the shut-in period. This rental lease pooling shut-in royalty provision is designed to protect the interests of both the lessor (landowner) and the lessee (oil or gas company) in situations where production from a well becomes uneconomical or temporarily impossible. It allows the lessee to temporarily cease production and shut in the well without terminating the lease agreement, while ensuring the lessor continues to receive royalty payments. During the shut-in period, which is typically stated in the contract, the lessee must pay a shut-in royalty to the lessor. The shut-in royalty is a reduced payment compared to the regular royalty, reflecting the fact that no production is taking place. The exact calculation and percentage of the shut-in royalty may vary depending on the terms negotiated between both parties. In the case of the Brownsville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, there may be different variations or types of provisions depending on specific lease agreements. These variations could include different shut-in royalty percentages, shut-in periods, or specific conditions triggering the shut-in provision. Some possible types or variations of this provision may include: 1. Short-term shut-in provision: This type of provision allows the lessee to temporarily halt production for a limited period, such as 30 or 60 days. The shut-in royalty would be calculated and paid accordingly for this duration. 2. Long-term shut-in provision: This type of provision enables the lessee to shut in the well for an extended period, such as several months or years. The shut-in royalty payment may be structured differently, such as a flat fee or a percentage of the regular royalty payment. 3. Graduated shut-in royalty provision: This variation involves a progressive adjustment of the shut-in royalty percentage over time. For example, the shut-in royalty may be higher during the initial shut-in period and gradually decrease over subsequent periods. 4. Trigger-based shut-in provision: This type of provision allows the lessee to shut in the well based on specific triggers or events, such as commodity price fluctuations or market conditions. The shut-in royalty payment may then be implemented as per the terms agreed upon in the lease contract. When entering into an oil and gas lease in the Brownsville area, it is crucial for both lessors and lessees to carefully review and understand the specific provisions related to the rental lease pooling shut-in royalty. This ensures that all parties are aware of their rights and obligations during potential shut-in situations and helps to safeguard the long-term interests of both parties involved.The Brownsville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific provision within the contracts of oil and gas leases in the Brownsville area of Texas. This provision outlines the guidelines and conditions for shutting in the production of oil or gas wells, as well as the royalty payments to be made during the shut-in period. This rental lease pooling shut-in royalty provision is designed to protect the interests of both the lessor (landowner) and the lessee (oil or gas company) in situations where production from a well becomes uneconomical or temporarily impossible. It allows the lessee to temporarily cease production and shut in the well without terminating the lease agreement, while ensuring the lessor continues to receive royalty payments. During the shut-in period, which is typically stated in the contract, the lessee must pay a shut-in royalty to the lessor. The shut-in royalty is a reduced payment compared to the regular royalty, reflecting the fact that no production is taking place. The exact calculation and percentage of the shut-in royalty may vary depending on the terms negotiated between both parties. In the case of the Brownsville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, there may be different variations or types of provisions depending on specific lease agreements. These variations could include different shut-in royalty percentages, shut-in periods, or specific conditions triggering the shut-in provision. Some possible types or variations of this provision may include: 1. Short-term shut-in provision: This type of provision allows the lessee to temporarily halt production for a limited period, such as 30 or 60 days. The shut-in royalty would be calculated and paid accordingly for this duration. 2. Long-term shut-in provision: This type of provision enables the lessee to shut in the well for an extended period, such as several months or years. The shut-in royalty payment may be structured differently, such as a flat fee or a percentage of the regular royalty payment. 3. Graduated shut-in royalty provision: This variation involves a progressive adjustment of the shut-in royalty percentage over time. For example, the shut-in royalty may be higher during the initial shut-in period and gradually decrease over subsequent periods. 4. Trigger-based shut-in provision: This type of provision allows the lessee to shut in the well based on specific triggers or events, such as commodity price fluctuations or market conditions. The shut-in royalty payment may then be implemented as per the terms agreed upon in the lease contract. When entering into an oil and gas lease in the Brownsville area, it is crucial for both lessors and lessees to carefully review and understand the specific provisions related to the rental lease pooling shut-in royalty. This ensures that all parties are aware of their rights and obligations during potential shut-in situations and helps to safeguard the long-term interests of both parties involved.
