Kings New York Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• County: Kings
• Control #: US-OG-576
• Format: Word; Rich Text

Description

This is a form of an Amendment to an Oil and Gas Lease to Add a Shut-in Royalty Provision For Oil Wells. The Kings New York Amendment to Oil and Gas Lease is a legal document that adds a shut-in provision for oil wells. This provision allows the operator of an oil well to temporarily halt production without terminating the lease agreement. By using this amendment, operators can safeguard against unfavorable market conditions or unforeseen technical issues. The shut-in provision within the Kings New York Amendment ensures that the lease remains valid even if the well is not actively producing. This allows operators to suspend production while still retaining their rights to the leased property. The length of the shut-in period may vary and can be negotiated between the operator and the lessor. One type of the Kings New York Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells includes a shut-in royalty clause. This clause specifies that the operator must pay a certain amount, typically a reduced royalty rate, during the shut-in period to compensate the lessor for the temporary cessation of production. The specific terms of this royalty payment should be clearly defined within the amendment. Another type of amendment that may be included is the shut-in time limit provision. This provision sets a maximum duration for which the well can be shut-in without any production activities. After this limit is reached, the operator must either resume production or terminate the lease agreement. The Kings New York Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is important for both the operator and the lessor. It provides flexibility for operators to adapt to market conditions, mitigate losses, or address technical difficulties without losing their lease. For the lessor, it ensures that the leased property remains under the operator's control and ready for future production once the shut-in period ends. Operators should consult with legal professionals and thoroughly review the specific terms and conditions outlined in the Kings New York Amendment to ensure compliance with all regulations and to protect their interests.

The Kings New York Amendment to Oil and Gas Lease is a legal document that adds a shut-in provision for oil wells. This provision allows the operator of an oil well to temporarily halt production without terminating the lease agreement. By using this amendment, operators can safeguard against unfavorable market conditions or unforeseen technical issues. The shut-in provision within the Kings New York Amendment ensures that the lease remains valid even if the well is not actively producing. This allows operators to suspend production while still retaining their rights to the leased property. The length of the shut-in period may vary and can be negotiated between the operator and the lessor. One type of the Kings New York Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells includes a shut-in royalty clause. This clause specifies that the operator must pay a certain amount, typically a reduced royalty rate, during the shut-in period to compensate the lessor for the temporary cessation of production. The specific terms of this royalty payment should be clearly defined within the amendment. Another type of amendment that may be included is the shut-in time limit provision. This provision sets a maximum duration for which the well can be shut-in without any production activities. After this limit is reached, the operator must either resume production or terminate the lease agreement. The Kings New York Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is important for both the operator and the lessor. It provides flexibility for operators to adapt to market conditions, mitigate losses, or address technical difficulties without losing their lease. For the lessor, it ensures that the leased property remains under the operator's control and ready for future production once the shut-in period ends. Operators should consult with legal professionals and thoroughly review the specific terms and conditions outlined in the Kings New York Amendment to ensure compliance with all regulations and to protect their interests.