New Jersey Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form)

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1150
• Format: Word; Rich Text

Description

This form is a long form subsurface underground gas storage lease and agreement with landowner. New Jersey Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) is a legally binding contract that outlines the terms and conditions regarding the use, development, and management of underground gas storage facilities. This agreement establishes an understanding between the gas storage operator and the landowner, ensuring both parties are protected while promoting efficient and safe extraction and storage of natural gas reserves. It specifically refers to the utilization of subsurface areas in New Jersey for gas storage purposes. Some key components covered in this lease and agreement include: 1. Parties involved: This section identifies both the gas storage operator and the landowner, mentioning their legal names, addresses, and contact information. 2. Purpose of the agreement: It clearly outlines the intentions of the parties, acknowledging that the landowner agrees to grant the gas storage operator the right to store and extract gas resources from the subsurface areas of the land. The agreement also emphasizes that the landowner has the right to receive compensation for this use. 3. Description of property: The lease provides an accurate legal description of the property, including survey details, boundary lines, and any other relevant information necessary for identifying the area of land subject to the lease. 4. Rights and obligations of the gas storage operator: This section outlines the specific rights granted to the operator, including the right to access the land, construct underground storage facilities, conduct testing and maintenance activities, and extract gas resources from the subsurface. It also covers the operator's obligation to restore and remediate the land after any operations are completed. 5. Compensation and royalty: This lease addresses the financial aspects of the agreement. It discusses the payment structure, including upfront lease bonus payments, annual rentals, taxes, fees, and royalties to be paid to the landowner based on the volume of gas stored or extracted. 6. Environmental regulations and liabilities: The agreement emphasizes adherence to all federal, state, and local environmental laws and regulations, ensuring proper handling, storage, and disposal of chemicals or hazardous substances associated with the gas storage operations. It also allocates responsibilities and liabilities for any environmental damages caused by the operator's activities. 7. Term and termination: This section specifies the duration of the agreement, including the initial term and any renewal options. It also outlines the conditions under which either party can terminate the lease, such as default in payment, violation of terms, or non-compliance with environmental regulations. 8. Indemnification and insurance: The agreement clarifies the indemnification clause, addressing the responsibilities of each party to indemnify and hold harmless the other from any claims, damages, or losses arising from the gas storage operations. It also requires the operator to maintain adequate insurance coverage for liabilities associated with the lease. Different types or variations of New Jersey Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) may exist depending on specific conditions, amendments, or special provisions required by the parties involved. These variations could include lease agreements for different amounts of land, different lease terms, unique compensation structures, or additional clauses tailored to address specific matters such as access to water sources or the presence of existing infrastructure.

New Jersey Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) is a legally binding contract that outlines the terms and conditions regarding the use, development, and management of underground gas storage facilities. This agreement establishes an understanding between the gas storage operator and the landowner, ensuring both parties are protected while promoting efficient and safe extraction and storage of natural gas reserves. It specifically refers to the utilization of subsurface areas in New Jersey for gas storage purposes. Some key components covered in this lease and agreement include: 1. Parties involved: This section identifies both the gas storage operator and the landowner, mentioning their legal names, addresses, and contact information. 2. Purpose of the agreement: It clearly outlines the intentions of the parties, acknowledging that the landowner agrees to grant the gas storage operator the right to store and extract gas resources from the subsurface areas of the land. The agreement also emphasizes that the landowner has the right to receive compensation for this use. 3. Description of property: The lease provides an accurate legal description of the property, including survey details, boundary lines, and any other relevant information necessary for identifying the area of land subject to the lease. 4. Rights and obligations of the gas storage operator: This section outlines the specific rights granted to the operator, including the right to access the land, construct underground storage facilities, conduct testing and maintenance activities, and extract gas resources from the subsurface. It also covers the operator's obligation to restore and remediate the land after any operations are completed. 5. Compensation and royalty: This lease addresses the financial aspects of the agreement. It discusses the payment structure, including upfront lease bonus payments, annual rentals, taxes, fees, and royalties to be paid to the landowner based on the volume of gas stored or extracted. 6. Environmental regulations and liabilities: The agreement emphasizes adherence to all federal, state, and local environmental laws and regulations, ensuring proper handling, storage, and disposal of chemicals or hazardous substances associated with the gas storage operations. It also allocates responsibilities and liabilities for any environmental damages caused by the operator's activities. 7. Term and termination: This section specifies the duration of the agreement, including the initial term and any renewal options. It also outlines the conditions under which either party can terminate the lease, such as default in payment, violation of terms, or non-compliance with environmental regulations. 8. Indemnification and insurance: The agreement clarifies the indemnification clause, addressing the responsibilities of each party to indemnify and hold harmless the other from any claims, damages, or losses arising from the gas storage operations. It also requires the operator to maintain adequate insurance coverage for liabilities associated with the lease. Different types or variations of New Jersey Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) may exist depending on specific conditions, amendments, or special provisions required by the parties involved. These variations could include lease agreements for different amounts of land, different lease terms, unique compensation structures, or additional clauses tailored to address specific matters such as access to water sources or the presence of existing infrastructure.