Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• Control #: US-OG-085
• Format: Word; Rich Text

Description

Faced with a similar situation to that encountered when considering using the preceding form, the lessor may desire to extend the lease on only a part of the lands subject to the original lease. This form addresses that situation. An Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease is a legal document used to extend the original lease agreement for extracting oil and gas resources in specific lands in Arkansas. This amendment allows the lessee (the party who holds the lease) and the lessor (the landowner) to mutually agree upon an extension to the primary term defined in the original lease. The primary term of an oil and gas lease typically establishes the initial duration during which the lessee has the right to explore, drill, and produce from the leasehold. When the initial primary term comes to an end, the lease may expire, or depending on the terms agreed upon, can be extended through an amendment. This extension can be beneficial for both parties, as it provides an opportunity to continue exploration and extraction efforts, especially if there is potential for significant resources in the leased area. The Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease specifies the following important details: 1. Parties involved: The names and contact information of both the lessee(s) and lessor(s) are listed, ensuring clarity about who holds the lease and who owns the land. 2. Lease details: The original lease agreement's effective date, lease number, and specific description of the leased land are mentioned. This includes legal descriptions such as Township, Range, Section, and more. 3. Extension terms: The amendment outlines the length of the extension, whether it extends the primary term for a specific number of months or years. The document clearly states the new end date for the extended primary term. 4. Consideration: The amendment may mention any additional consideration provided by the lessee to the lessor in exchange for the extension. This could include bonus payments, increased royalty rates, or other financial arrangements. 5. Other provisions: Any additional terms agreed upon to facilitate the extension may be included, such as amendments to drilling obligations, pooling provisions, or surface use agreements. Different types of Arkansas Amendments to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease may arise depending on the specific circumstances: 1. Time-Based Extension: This type of amendment extends the lease for a definite period, often mentioned in terms of months or years. 2. Production-Based Extension: In some cases, the extension is contingent upon the discovery of commercially viable quantities of oil or gas within the leased premises. This type of extension comes into effect only with successful production. 3. Mutual Agreement: Less commonly, both parties may mutually agree to extend the primary term without a specific time or production-based criteria. This provides flexibility in negotiating the terms of the extension. In conclusion, an Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease is a legally binding document that allows the lessee and lessor to continue their contractual relationship beyond the initial primary term. By mutually agreeing to an extension, both parties can proceed with oil and gas exploration and extraction efforts on the specified lands in Arkansas, with the extension's details and terms clearly outlined in the amendment.

An Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease is a legal document used to extend the original lease agreement for extracting oil and gas resources in specific lands in Arkansas. This amendment allows the lessee (the party who holds the lease) and the lessor (the landowner) to mutually agree upon an extension to the primary term defined in the original lease. The primary term of an oil and gas lease typically establishes the initial duration during which the lessee has the right to explore, drill, and produce from the leasehold. When the initial primary term comes to an end, the lease may expire, or depending on the terms agreed upon, can be extended through an amendment. This extension can be beneficial for both parties, as it provides an opportunity to continue exploration and extraction efforts, especially if there is potential for significant resources in the leased area. The Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease specifies the following important details: 1. Parties involved: The names and contact information of both the lessee(s) and lessor(s) are listed, ensuring clarity about who holds the lease and who owns the land. 2. Lease details: The original lease agreement's effective date, lease number, and specific description of the leased land are mentioned. This includes legal descriptions such as Township, Range, Section, and more. 3. Extension terms: The amendment outlines the length of the extension, whether it extends the primary term for a specific number of months or years. The document clearly states the new end date for the extended primary term. 4. Consideration: The amendment may mention any additional consideration provided by the lessee to the lessor in exchange for the extension. This could include bonus payments, increased royalty rates, or other financial arrangements. 5. Other provisions: Any additional terms agreed upon to facilitate the extension may be included, such as amendments to drilling obligations, pooling provisions, or surface use agreements. Different types of Arkansas Amendments to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease may arise depending on the specific circumstances: 1. Time-Based Extension: This type of amendment extends the lease for a definite period, often mentioned in terms of months or years. 2. Production-Based Extension: In some cases, the extension is contingent upon the discovery of commercially viable quantities of oil or gas within the leased premises. This type of extension comes into effect only with successful production. 3. Mutual Agreement: Less commonly, both parties may mutually agree to extend the primary term without a specific time or production-based criteria. This provides flexibility in negotiating the terms of the extension. In conclusion, an Arkansas Amendment to Oil and Gas Lease to Extend the Primary Term of the Lease on Part of the Lands Subject to the Lease is a legally binding document that allows the lessee and lessor to continue their contractual relationship beyond the initial primary term. By mutually agreeing to an extension, both parties can proceed with oil and gas exploration and extraction efforts on the specified lands in Arkansas, with the extension's details and terms clearly outlined in the amendment.