This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.
Nebraska Continuous Development, Retained Acreage, and Depth Limitations are important aspects of oil and gas exploration and production in the state of Nebraska. These regulations are designed to ensure efficient and responsible development while protecting the environment and ensuring fair and equitable use of resources. Continuous Development: Nebraska Continuous Development is a term used to describe a regulation that requires oil and gas operators to continuously develop their leased acreage within a specific timeframe. This regulation ensures timely exploration and production activities, preventing the hoarding of leases by operators without any significant progress. It promotes the efficient utilization of oil and gas resources in the state. Retained Acreage: In Nebraska, Retained Acreage refers to the portion of leased land that an operator can retain when the lease expires or is terminated. The state has specific regulations regarding the size and conditions for retained acreage. This provision allows operators to hold on to a portion of the leased land for future development while relinquishing the unused or non-productive portion back to the state for potential re-lease. Depth Limitations: Depth Limitations are the restrictions on the vertical and horizontal range of exploration and production activities in Nebraska. These limitations define the depth at which an operator can access and develop oil and gas resources. The boundaries are set to prevent potential environmental risks and ensure responsible drilling practices within acceptable depths. Types of Nebraska Continuous Development: 1. Primary Term Continuous Development: Under this type, operators are required to continuously develop their leased acreage throughout the primary term of the lease. Failure to do so may result in lease forfeiture or restrictions on future leasing opportunities. 2. Secondary Term Continuous Development: If the lease enters the secondary term, operators must still maintain continuous development within the leased acreage. The regulations may specify different development requirements and timelines compared to the primary term. Types of Retained Acreage: 1. Producing Acreage: Operators may retain a portion of leased acreage that is actively producing oil and gas. This acreage is considered valuable and may contribute to ongoing production operations. 2. Non-Producing Acreage: Non-producing acreage refers to the portion of leased land that is not actively producing oil and gas. Operators may need to relinquish this acreage to ensure efficient and fair utilization of resources. Types of Depth Limitations: 1. Shallow Depth Limitations: These limitations restrict the depth at which operators can explore and produce oil and gas, usually pertaining to shallower formations. The regulations aim to protect freshwater aquifers and shallow groundwater resources from potential contamination. 2. Deep Depth Limitations: Deep depth limitations refer to the restrictions on exploring and developing oil and gas in deeper formations. These regulations are in place to ensure safe drilling practices and prevent any adverse impact on geological structures and deeper groundwater sources. Understanding Nebraska Continuous Development, Retained Acreage, and Depth Limitations is crucial for oil and gas operators, ensuring compliance with state regulations and fostering responsible and sustainable development practices.
