Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• 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 Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a legal document designed to modify existing oil and gas leases in the state of Kansas. This amendment specifically focuses on the inclusion of a shut-in provision for oil wells, which allows operators to temporarily cease production without forfeiting their lease rights. The shut-in provision is a crucial component of the amendment as it addresses situations where continued production from an oil well becomes economically unviable or impractical. By including this provision, lessees have the flexibility to temporarily stop production while preserving their lease rights and preventing the lease from expiring due to non-production. This Kansas amendment helps protect the interests of both the operators and the lessors by providing a mechanism to temporarily halt production during periods of low oil prices, declining reserves, equipment failure, or other unforeseen circumstances. It ensures that operators can resume production when conditions become more favorable, without the risk of losing their lease rights or facing financial penalties. There are several types of Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells: 1. Standard Shut-In Provision: This type of amendment incorporates a standard shut-in provision into the existing oil and gas lease. It outlines the specific conditions under which the operator can invoke the shut-in provision and the duration for which the well can remain shut-in. 2. Modified Shut-In Provision: This amendment modifies the existing shut-in provision in the lease agreement to better suit the specific needs of the operator and lessor. It may include additional clauses or specific conditions that both parties have negotiated to ensure fairness and protection of their respective interests. 3. Model Clause Addition: Some operators may choose to add a model clause specifically designed for shut-in provisions into their existing oil and gas lease. This type of amendment incorporates a redrafted, standardized clause that has been widely accepted and used in the industry. 4. Shut-In Provision Renewal: In cases where the original shut-in provision in the lease has expired or requires renewal, this amendment adds a provision to extend or update the shut-in provision. It ensures that operators can continue to benefit from the shut-in provision without any disruption, as long as the lessor agrees to the extension. In conclusion, the Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a valuable legal tool that enables operators to temporarily cease production from oil wells without jeopardizing their lease rights. It provides flexibility and protection for both operators and lessors, ensuring the continued viability of oil and gas operations in Kansas.

The Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a legal document designed to modify existing oil and gas leases in the state of Kansas. This amendment specifically focuses on the inclusion of a shut-in provision for oil wells, which allows operators to temporarily cease production without forfeiting their lease rights. The shut-in provision is a crucial component of the amendment as it addresses situations where continued production from an oil well becomes economically unviable or impractical. By including this provision, lessees have the flexibility to temporarily stop production while preserving their lease rights and preventing the lease from expiring due to non-production. This Kansas amendment helps protect the interests of both the operators and the lessors by providing a mechanism to temporarily halt production during periods of low oil prices, declining reserves, equipment failure, or other unforeseen circumstances. It ensures that operators can resume production when conditions become more favorable, without the risk of losing their lease rights or facing financial penalties. There are several types of Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells: 1. Standard Shut-In Provision: This type of amendment incorporates a standard shut-in provision into the existing oil and gas lease. It outlines the specific conditions under which the operator can invoke the shut-in provision and the duration for which the well can remain shut-in. 2. Modified Shut-In Provision: This amendment modifies the existing shut-in provision in the lease agreement to better suit the specific needs of the operator and lessor. It may include additional clauses or specific conditions that both parties have negotiated to ensure fairness and protection of their respective interests. 3. Model Clause Addition: Some operators may choose to add a model clause specifically designed for shut-in provisions into their existing oil and gas lease. This type of amendment incorporates a redrafted, standardized clause that has been widely accepted and used in the industry. 4. Shut-In Provision Renewal: In cases where the original shut-in provision in the lease has expired or requires renewal, this amendment adds a provision to extend or update the shut-in provision. It ensures that operators can continue to benefit from the shut-in provision without any disruption, as long as the lessor agrees to the extension. In conclusion, the Kansas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a valuable legal tool that enables operators to temporarily cease production from oil wells without jeopardizing their lease rights. It provides flexibility and protection for both operators and lessors, ensuring the continued viability of oil and gas operations in Kansas.