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.
Texas Continuous Development: Texas Continuous Development refers to a legal provision in the oil and gas industry that mandates operators to continuously develop and produce hydrocarbon resources from a particular lease or unit. This provision prevents operators from holding onto leases without actively exploring or developing them. It promotes efficient utilization of resources and ensures maximum production from the designated area. There are different types of Texas Continuous Development: 1. Field-Wide Continuous Development: Also known as full-field development, this type requires operators to develop and produce hydrocarbons from all the productive formations within an entire field. It aims to comprehensively exploit the hydrocarbon reserves and maximize production efficiency throughout the field. 2. Pool-Wide Continuous Development: In this type, operators are obligated to continuously develop and produce hydrocarbon resources within a defined pool or reservoir. It primarily focuses on efficient reservoir management, ensuring optimal exploitation of the reserves in a specific area. Texas Retained Acreage: Texas Retained Acreage refers to the portion of leased land that an operator can retain after the primary lease term expires. It allows operators to hold a particular acreage without the obligation to drill or develop during the secondary lease term. This provision enables operators to hold onto strategic locations while reducing financial burdens and allowing flexibility in planning future drilling activities. There are different types of Texas Retained Acreage: 1. Standard Retained Acreage: This type allows operators to retain a certain portion of acreage after the primary lease term ends. The specific criteria for retained acreage, such as the percentage or minimum acreage, may vary depending on the lease agreement and regulations. 2. Deep Gas Retained Acreage: This type applies specifically to leases targeting deep gas resources. It allows operators to retain additional acreage beyond the standard retained acreage, incentivizing exploration and development of deeper formations. Texas Depth Limitations: Texas Depth Limitations refer to regulatory restrictions on the vertical and horizontal extent to which operators can drill or explore for hydrocarbon resources. These limitations aid in resource conservation, protection of underground formations, and maintenance of reservoir integrity. There are different types of Texas Depth Limitations: 1. Vertical Depth Limitations: These limitations define the maximum depth to which operators can drill vertically. They ensure that drilling activities do not disturb deeper formations or potential underground freshwater sources, while also preventing excessive expenses associated with drilling extensive vertical wells. 2. Horizontal Depth Limitations: These limitations govern the maximum horizontal extent to which operators can drill within a reservoir. They promote effective reservoir management and production efficiency by defining the boundaries within which an operator can extract hydrocarbons horizontally. It is important for operators to comply with Texas Continuous Development, Retained Acreage, and Depth Limitations to adhere to legal regulations, maximize resource utilization, and promote responsible oil and gas exploration and production practices.
