This form is a Texas Lease agreement wherein Lessor grants, leases, and lets exclusively to Lessee the lands described within for the purposes of conducting seismic and geophysical operations, exploring, drilling, mining, and operating for, producing and owning oil, gas, sulfur, and all other minerals whether or not similar to those mentioned (collectively the oil or gas ), and the right to make surveys, lay pipelines, establish and utilize facilities for surface or subsurface disposal of salt water, construct roads and bridges, dig canals, build tanks, power stations, power lines, telephone lines, and other structures on the Lands, necessary or useful in Lessee's operations on the Lands or any other land adjacent to the Lands. This lease form also provides for pooling.
Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific provision within the lease agreement that pertains to oil and gas operators in Abilene, Texas. This provision outlines the conditions under which operators are entitled to receive shut-in royalty payments in the case of leased wells being temporarily shut down due to unforeseen circumstances. The Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision allows operators to suspend production temporarily and still receive compensation for the loss of income during the shutdown period. This provision serves as a protective measure for operators who encounter economic or technical difficulties that require the suspension of production. Under this provision, there are different types of shut-in royalty provisions that can be specified in the lease agreement based on the desired terms and conditions. These may include: 1. Duration: The lease agreement may specify the duration for which the shut-in royalty provision remains in effect. It can range from a few months to several years, depending on the circumstances and negotiation between the parties involved. 2. Payment Amount: The lease agreement can outline the predetermined shut-in royalty payment amount that the operator will receive during the temporary shut-in period. This sum is typically a fraction of the regular production royalties, often calculated as a percentage of the average monthly royalty income before the well's closure. 3. Shut-In Criteria: The provision also defines the specific criteria necessary for invoking the shut-in royalty provision. This may include market conditions, mechanical breakdowns, dry wells, or other factors beyond the operator's control that render continued production unfeasible. 4. Notice Requirements: The agreement may establish how and when the operator should provide notice to the lessor regarding the need for the shut-in provision. Timely notification is essential to ensure both parties can properly plan for the temporary cessation of production. 5. Renewal or Termination: The provision might outline the conditions under which the shut-in provision can be renewed or terminated. This allows for flexibility in case both parties agree to extend or revoke the shut-in royalty arrangement based on changing circumstances. Overall, the Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision serves as a crucial component of lease agreements in the oil and gas industry in Abilene, Texas. It provides operators with financial protection in case they need to temporarily suspend production, ensuring a fair compensation arrangement during such periods.Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific provision within the lease agreement that pertains to oil and gas operators in Abilene, Texas. This provision outlines the conditions under which operators are entitled to receive shut-in royalty payments in the case of leased wells being temporarily shut down due to unforeseen circumstances. The Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision allows operators to suspend production temporarily and still receive compensation for the loss of income during the shutdown period. This provision serves as a protective measure for operators who encounter economic or technical difficulties that require the suspension of production. Under this provision, there are different types of shut-in royalty provisions that can be specified in the lease agreement based on the desired terms and conditions. These may include: 1. Duration: The lease agreement may specify the duration for which the shut-in royalty provision remains in effect. It can range from a few months to several years, depending on the circumstances and negotiation between the parties involved. 2. Payment Amount: The lease agreement can outline the predetermined shut-in royalty payment amount that the operator will receive during the temporary shut-in period. This sum is typically a fraction of the regular production royalties, often calculated as a percentage of the average monthly royalty income before the well's closure. 3. Shut-In Criteria: The provision also defines the specific criteria necessary for invoking the shut-in royalty provision. This may include market conditions, mechanical breakdowns, dry wells, or other factors beyond the operator's control that render continued production unfeasible. 4. Notice Requirements: The agreement may establish how and when the operator should provide notice to the lessor regarding the need for the shut-in provision. Timely notification is essential to ensure both parties can properly plan for the temporary cessation of production. 5. Renewal or Termination: The provision might outline the conditions under which the shut-in provision can be renewed or terminated. This allows for flexibility in case both parties agree to extend or revoke the shut-in royalty arrangement based on changing circumstances. Overall, the Abilene Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision serves as a crucial component of lease agreements in the oil and gas industry in Abilene, Texas. It provides operators with financial protection in case they need to temporarily suspend production, ensuring a fair compensation arrangement during such periods.
