Utah Memorandum of Coalbed Methane Gas Lease

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Multi-State
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US-OG-350
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Description

This is a form of a memorandum that gives notice that the Lessor has granted Lessee the exclusive right to explore for, produce, and market coalbed methane gas and all constituent products from lands.

Utah Memorandum of Coaled Methane Gas Lease is a legal document outlining an agreement between a lessor (landowner) and a lessee (an energy company) regarding the exploration, development, and extraction of coaled methane gas reserves in Utah. It establishes the terms and conditions for leasing the mineral rights and governs the rights and responsibilities of both parties involved. The memorandum delineates specific clauses and provisions which include: 1. Lease Duration and Renewal Options: This section specifies the duration of the lease, usually ranging from a few years to a decade, and provisions for potential renewal or extension. 2. Specific Land Description: The memorandum should provide a comprehensive legal description of the land or property covered by the lease, including boundaries and key landmarks. 3. Rights and Obligations of the Lessee: It outlines the lessee's rights to access and explore the property, extract coaled methane gas, construct infrastructure (such as pipelines and wells), and develop the leased area. The lessee may also be responsible for ensuring environmental compliance, safety measures, and the restoration of the land post-extraction. 4. Royalty Payments: The document specifies the royalty rates payable to the lessor, usually expressed as a percentage of the market value of the extracted gas. This section may also address payment schedules, methods, and any deductions or adjustments. 5. Surface Use Agreements: If surface operations are required for extraction purposes, the document may include specific details related to compensatory agreements, surface damage compensation, and landowner access rights. 6. Indemnification and Liability: This section addresses liability, where the lessee often assumes responsibility for damages, injuries, or environmental harm resulting from their operations on the leased property. 7. Termination Clauses: The memorandum will define conditions that can lead to the termination of the lease, such as non-payment of royalties, non-compliance with regulations, or breach of agreement terms. Different types of Utah Memorandum of Coaled Methane Gas Lease may exist depending on variations in lease terms, primary objectives, and additional provisions. These could include variations like: 1. Exploration Lease: Covers the initial phase of exploring the potential for coaled methane gas reserves on the leased land. 2. Development Lease: Granted after successful exploration, this lease allows the lessee to develop the reserves, install production infrastructure, and commence extraction activities. 3. Royalty Interest Lease: Assigns the lessor a royalty interest rather than upfront payments, where the landowner receives a percentage of the revenue generated from the sale of gas. 4. Extended Lease: Granted when the original lease expires, an extended lease allows the lessee to continue operations for an additional period, subject to new terms and conditions.

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FAQ

Coal seam gas (CSG), also known as coal bed methane, is a mixture of a number of gases but is mostly made up of methane (generally 95-97 per cent pure methane). It is typically attached by adsorption to the coal matrix, and is held in the coal by the pressure of formation water in the coal cleats and fractures.

CBM reservoirs are characterized by low mechanical strength, presence of developed cleats, heterogeneity and anisotropy, and a larger surface area as compared to the conventional gas reservoirs. Therefore, potential damage in coal may occur during drilling, completion, and production.

Coalbed methane is the pure methane gas extracted from coal seams, while shale gas is a mixture of propane and butane only that can be extracted from fine-grained sedimentary rocks.

The composition of CBM in a sample of coal varies widely across several locations in the country. Generally, it consists predominantly of methane gas (CH4) although it can contain trace amounts of ethane (C2H6), carbon dioxide (CO2) and water (H2O).

CBM is naturally created during the geologic process of converting plant material to coal (coalification). To extract the methane, CBM operators drill wells into coal seams and pump out ground water (produced water or CBM wastewater).

Until about the middle of the 20th century coalbed gas was considered a mixture of methane (firedamp) and carbon dioxide (blackdamp). Ethane, when detected, was attributed to contamination from natural gas horizons below the coal (wea More recent analyses of coalbed gas have shown it to be a complex mixture, .

CMM shows great variability in flow rate and composition. At a typical gassy coal mine, ventilation air may contain 0.1?1% methane, whereas gas drained from the seam before mining can contain 60% to more than 95% methane depending on the presence of other gasses in the coal seam.

Coal bed methane (CBM) is an unconventional form of natural gas found in coal deposits or coal seams. It is a primary clean energy source of natural gas. The development and utilization of CBM is of great social and economic benefit.

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Jun 21, 2018 — The proposed coal lease is attached to this memorandum. ... seam gas (collectively “coalbed methane”) within the Leased Premises, Lessee may. Oil Gas and Minerals. Download legal document forms from the largest library of legal forms. Search for state-specific templates available for you to ...... in the current version or with Audit Trail added. Explore all the advantages of our editor today! be ready to get more. Complete this form in 5 minutes or ... ... gas, and coal) primarily under federal (BLM) jurisdiction. When BLM issues a valid lease to extract oil and gas resources from federal lands under BLM ... These zero discharge basins included 4 Additional details on the sampling process design are documented in an October 19, 2009, memorandum (Battelle, 2009), ... by NT Haderlie — A Utah coal mining operation vented methane gas into the atmosphere as it developed ... gas would conflict with coalbed methane leasing under the MLA). 84 Id ... by JDPW Lear · 2003 — ... the federal public lands and Indian experience. These issues will cover access on the leasehold surface access of split-estate leaseholds ... ... gas lease has been secured from the holder of the mineral estate. The ... In Utah, our gas production has been curtailed significantly while we wait on ... Jul 1, 2014 — ... the lessee of a coal lease to recover natural gas, including coalbed methane, contained in a coal seam in the location of the coal lease ... by NT Haderlie · 2010 — A Utah coal mining operation vented methane gas into the atmosphere as it developed ... gas would conflict with coalbed methane leasing under the MLA). 84 Id ...

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Utah Memorandum of Coalbed Methane Gas Lease