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.
Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial element in oil and gas leasing agreements in the state of Texas. This provision typically outlines the conditions and terms under which a leaseholder can suspend or withhold the payment of royalties to the mineral owner or lessor. The purpose of this provision is to protect the leaseholder's interests in situations where the production of oil or gas becomes temporarily impracticable or unprofitable. The Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision enables leaseholders to initiate a temporary shutdown of production due to various reasons such as lack of market demand, equipment malfunction, or adverse weather conditions. By utilizing this provision, the leaseholder can avoid financial losses that may arise from producing and selling oil or gas at prices lower than the production costs or during unfavorable market conditions. It is important to note that there are different variations of the Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, depending on the contractual agreements between the mineral owner and the leaseholder. Some common types of this provision include: 1. Primary Shut-In Royalty Provision: This type allows the leaseholder to shut-in or suspend production without paying royalties to the mineral owner. However, the leaseholder is required to compensate the mineral owner with a shut-in royalty payment, which is typically a fraction of the regular royalty rate. 2. Secondary Shut-In Royalty Provision: In this type, the leaseholder has the option to temporarily halt production and withhold royalty payments. However, unlike the primary provision, no shut-in royalty payments are required to be made to the mineral owner. 3. Pooling Shut-In Royalty Provision: This provision allows leaseholders who participate in a pooling agreement, where multiple parcels of land are combined for the purpose of shared production, to shut-in production on specific leases while continuing production on others within the pool. The payment or non-payment of royalties will depend on the specific terms agreed upon in the pooling arrangement. The Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision offers flexibility to both leaseholders and mineral owners by allowing temporary production suspensions without terminating the lease agreement. The provision's conditions and terms can vary depending on the negotiations and agreements between both parties, ensuring a fair balance of interests and mitigating potential financial risks for leaseholders in the volatile oil and gas industry.Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial element in oil and gas leasing agreements in the state of Texas. This provision typically outlines the conditions and terms under which a leaseholder can suspend or withhold the payment of royalties to the mineral owner or lessor. The purpose of this provision is to protect the leaseholder's interests in situations where the production of oil or gas becomes temporarily impracticable or unprofitable. The Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision enables leaseholders to initiate a temporary shutdown of production due to various reasons such as lack of market demand, equipment malfunction, or adverse weather conditions. By utilizing this provision, the leaseholder can avoid financial losses that may arise from producing and selling oil or gas at prices lower than the production costs or during unfavorable market conditions. It is important to note that there are different variations of the Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, depending on the contractual agreements between the mineral owner and the leaseholder. Some common types of this provision include: 1. Primary Shut-In Royalty Provision: This type allows the leaseholder to shut-in or suspend production without paying royalties to the mineral owner. However, the leaseholder is required to compensate the mineral owner with a shut-in royalty payment, which is typically a fraction of the regular royalty rate. 2. Secondary Shut-In Royalty Provision: In this type, the leaseholder has the option to temporarily halt production and withhold royalty payments. However, unlike the primary provision, no shut-in royalty payments are required to be made to the mineral owner. 3. Pooling Shut-In Royalty Provision: This provision allows leaseholders who participate in a pooling agreement, where multiple parcels of land are combined for the purpose of shared production, to shut-in production on specific leases while continuing production on others within the pool. The payment or non-payment of royalties will depend on the specific terms agreed upon in the pooling arrangement. The Dallas Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision offers flexibility to both leaseholders and mineral owners by allowing temporary production suspensions without terminating the lease agreement. The provision's conditions and terms can vary depending on the negotiations and agreements between both parties, ensuring a fair balance of interests and mitigating potential financial risks for leaseholders in the volatile oil and gas industry.
