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.
Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause frequently included in oil and gas lease agreements. This provision protects the lessor's (landowner's) interests in situations where the lessee (oil or gas company) temporarily faces production shutdown or inability to extract due to various reasons. Here is a detailed description explaining the provisions and variations of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision: The Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision serves as a safeguard should the production activities on the leased property be temporarily ceased due to unforeseen events. These events include but are not limited to equipment failures, government-imposed regulations, unforeseen market conditions, or natural disasters. By incorporating this clause in the lease agreement, both parties establish a framework for financial protection during these uncontrollable disruptions. When activating the Rental Lease Pooling Shut-In Royalty Provision, the lessee is allowed to halt production temporarily, without incurring any penalty or losing their lease rights. During the shut-in period, the lessee ceases oil or gas extractions but retains exclusive rights to resume production once the situation normalizes. The shut-in period is often limited and may vary depending on the specific language of the provision in the lease agreement. Furthermore, in the Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, the lessor is entitled to receive a shut-in royalty payment. The amount of this royalty payment typically depends on the negotiated terms and can be a fraction of the original royalty rate agreed upon in the lease. This payment compensates the lessor for the temporary inability to receive standard royalty income during the shut-in period. Variations of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may involve specific conditions and terms tailored to the involved parties' preferences or unique circumstances. For instance, some variants may grant the lessee the right to extend their shut-in period with mutual consent from the lessor. Others might establish minimum shut-in periods and adjust shut-in royalty rates based on market or commodity price changes. Additionally, types of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may include subcategories based on different lease pooling scenarios. Lease pooling refers to combining adjacent leasehold interests to optimize extraction efficiency. Each variant incorporates the base shut-in royalty provision but integrates additional terms specific to pooling arrangements, such as how shut-in royalties are calculated when multiple leases contribute to a production unit. To summarize, the Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision protects both the lessee and lessor in situations where oil or gas production must be temporarily halted. It ensures the lessee's lease rights are preserved while compensating the lessor for the loss of regular royalties during the shutdown period. The provision may have variations addressing unique circumstances and pooling scenarios, each aimed at maintaining a fair and mutually beneficial relationship between the parties involved.Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause frequently included in oil and gas lease agreements. This provision protects the lessor's (landowner's) interests in situations where the lessee (oil or gas company) temporarily faces production shutdown or inability to extract due to various reasons. Here is a detailed description explaining the provisions and variations of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision: The Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision serves as a safeguard should the production activities on the leased property be temporarily ceased due to unforeseen events. These events include but are not limited to equipment failures, government-imposed regulations, unforeseen market conditions, or natural disasters. By incorporating this clause in the lease agreement, both parties establish a framework for financial protection during these uncontrollable disruptions. When activating the Rental Lease Pooling Shut-In Royalty Provision, the lessee is allowed to halt production temporarily, without incurring any penalty or losing their lease rights. During the shut-in period, the lessee ceases oil or gas extractions but retains exclusive rights to resume production once the situation normalizes. The shut-in period is often limited and may vary depending on the specific language of the provision in the lease agreement. Furthermore, in the Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, the lessor is entitled to receive a shut-in royalty payment. The amount of this royalty payment typically depends on the negotiated terms and can be a fraction of the original royalty rate agreed upon in the lease. This payment compensates the lessor for the temporary inability to receive standard royalty income during the shut-in period. Variations of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may involve specific conditions and terms tailored to the involved parties' preferences or unique circumstances. For instance, some variants may grant the lessee the right to extend their shut-in period with mutual consent from the lessor. Others might establish minimum shut-in periods and adjust shut-in royalty rates based on market or commodity price changes. Additionally, types of Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may include subcategories based on different lease pooling scenarios. Lease pooling refers to combining adjacent leasehold interests to optimize extraction efficiency. Each variant incorporates the base shut-in royalty provision but integrates additional terms specific to pooling arrangements, such as how shut-in royalties are calculated when multiple leases contribute to a production unit. To summarize, the Carrollton Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision protects both the lessee and lessor in situations where oil or gas production must be temporarily halted. It ensures the lessee's lease rights are preserved while compensating the lessor for the loss of regular royalties during the shutdown period. The provision may have variations addressing unique circumstances and pooling scenarios, each aimed at maintaining a fair and mutually beneficial relationship between the parties involved.
