This form is a Rocky Mountain 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.
A Michigan Oil and Gas Lease — No SurfacOccupancync— - Rocky Mountain Paid Up — Form B is a legally binding agreement between a landowner in Michigan and a company involved in oil and gas exploration. This particular type of lease is known for its exclusion of surface occupancy, meaning that the lessee does not have the right to conduct any activities or operations on the surface of the leased property. Instead, the lessee has the exclusive right to extract and produce oil and gas resources from beneath the surface. This lease arrangement is often preferred by landowners who are concerned about potential disturbances to their property, as it allows them to retain full control over the surface while still benefiting from the extraction of oil and gas resources that may exist underground. The Rocky Mountain Paid Up clause implies that the lessee has paid the landowner an upfront fee or a one-time payment to secure the lease. This payment serves as compensation for the potential revenue that the landowner may have otherwise received through the extraction activities. Keywords: Michigan, oil and gas lease, no surface occupancy, rocky mountain paid up, form B, landowner, company, exploration, activities, operations, exclusive right, extract, produce, surface disturbances, control, extraction, upfront fee, one-time payment, compensation, revenue, resources. Different types of Michigan Oil and Gas Lease — No SurfacOccupancync— - Rocky Mountain Paid Up — Form B include variations in terms and conditions, such as lease duration, royalty rates, and specific provisions pertaining to surface usage restrictions or environmental considerations. It is important to carefully review and understand the terms outlined in the lease agreement before entering into any such arrangement.
