New Mexico 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 Mexico Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) The New Mexico Subsurface Underground Gas Storage Lease and Agreement is a comprehensive legal document that governs the rights, responsibilities, and obligations of parties involved in a gas storage lease transaction in the state of New Mexico. This long-form agreement provides a detailed framework for the exploration, development, storage, and extraction of natural gas reserves within a designated underground storage facility. Some key elements covered in the New Mexico Subsurface Underground Gas Storage Lease and Agreement include: 1. Parties Involved and Definitions: This section clearly identifies and defines the lessor (landowner) and lessee (gas storage operator) involved in the lease agreement. It also includes key definitions for terms used throughout the document. 2. Grant of Rights and Obligations: This part outlines the rights and obligations of both the landowner and the gas storage operator. It specifies the exclusive rights granted to the lessee for gas storage purposes and the corresponding responsibilities of the landowner, such as granting access to the leased premises. 3. Term and Extension: The agreement specifies the initial term of the lease and provides provisions for potential extensions or renewals based on mutual agreement between the parties. 4. Payment and Royalties: This section covers the financial aspects of the lease, including the payment of consideration to the landowner for granting access to the underground storage facility. It further outlines any applicable royalties or payments based on the storage or extraction of gas. 5. Exploration and Development: This part regulates the exploration, development, and operation of the underground storage facility. It includes provisions for the drilling, completion, and maintenance of wells while adhering to safety and environmental standards set by the state. 6. Storage Operations: This section governs the actual storage operations, including injection, withdrawal, and monitoring activities. It provides guidelines on the maximum storage capacity, pressure limits, gas quality assurance, and safety measures. 7. Maintenance and Repairs: The agreement sets out the responsibilities of both parties for the repair and maintenance of the storage facility, wells, and associated infrastructure to ensure their safe and efficient operation. 8. Insurance and Indemnification: This part addresses insurance requirements needed to protect both parties in the event of accidents, damages, or liability arising from the storage operations. It includes provisions for indemnification and liability limitations. 9. Compliance with Laws: The agreement emphasizes the need for both parties to comply with all applicable federal, state, and local laws, regulations, and permits governing gas storage and operations. 10. Dispute Resolution and Termination: This section outlines the mechanisms for dispute resolution, including mediation and arbitration. It also specifies the conditions under which either party can terminate the agreement. Different types of New Mexico Subsurface Underground Gas Storage Lease and Agreement may exist based on specific variations in lease terms, such as term length, payment structures, royalty rates, and additional provisions tailored to specific agreements. These variations may depend on factors such as the location, capacity, and purpose of the underground storage facility. However, the core elements mentioned above generally form the basis of any comprehensive long-form lease agreement for gas storage in New Mexico.

New Mexico Subsurface Underground Gas Storage Lease and Agreement (With Landowner; Long Form) The New Mexico Subsurface Underground Gas Storage Lease and Agreement is a comprehensive legal document that governs the rights, responsibilities, and obligations of parties involved in a gas storage lease transaction in the state of New Mexico. This long-form agreement provides a detailed framework for the exploration, development, storage, and extraction of natural gas reserves within a designated underground storage facility. Some key elements covered in the New Mexico Subsurface Underground Gas Storage Lease and Agreement include: 1. Parties Involved and Definitions: This section clearly identifies and defines the lessor (landowner) and lessee (gas storage operator) involved in the lease agreement. It also includes key definitions for terms used throughout the document. 2. Grant of Rights and Obligations: This part outlines the rights and obligations of both the landowner and the gas storage operator. It specifies the exclusive rights granted to the lessee for gas storage purposes and the corresponding responsibilities of the landowner, such as granting access to the leased premises. 3. Term and Extension: The agreement specifies the initial term of the lease and provides provisions for potential extensions or renewals based on mutual agreement between the parties. 4. Payment and Royalties: This section covers the financial aspects of the lease, including the payment of consideration to the landowner for granting access to the underground storage facility. It further outlines any applicable royalties or payments based on the storage or extraction of gas. 5. Exploration and Development: This part regulates the exploration, development, and operation of the underground storage facility. It includes provisions for the drilling, completion, and maintenance of wells while adhering to safety and environmental standards set by the state. 6. Storage Operations: This section governs the actual storage operations, including injection, withdrawal, and monitoring activities. It provides guidelines on the maximum storage capacity, pressure limits, gas quality assurance, and safety measures. 7. Maintenance and Repairs: The agreement sets out the responsibilities of both parties for the repair and maintenance of the storage facility, wells, and associated infrastructure to ensure their safe and efficient operation. 8. Insurance and Indemnification: This part addresses insurance requirements needed to protect both parties in the event of accidents, damages, or liability arising from the storage operations. It includes provisions for indemnification and liability limitations. 9. Compliance with Laws: The agreement emphasizes the need for both parties to comply with all applicable federal, state, and local laws, regulations, and permits governing gas storage and operations. 10. Dispute Resolution and Termination: This section outlines the mechanisms for dispute resolution, including mediation and arbitration. It also specifies the conditions under which either party can terminate the agreement. Different types of New Mexico Subsurface Underground Gas Storage Lease and Agreement may exist based on specific variations in lease terms, such as term length, payment structures, royalty rates, and additional provisions tailored to specific agreements. These variations may depend on factors such as the location, capacity, and purpose of the underground storage facility. However, the core elements mentioned above generally form the basis of any comprehensive long-form lease agreement for gas storage in New Mexico.