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.
Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause or provision that is commonly included in oil and gas leases in the Fort Worth, Texas area. This provision is specifically designed to protect the rights and interests of both the lessor (the mineral owner) and the lessee (the oil and gas company). The purpose of the Rental Lease Pooling Shut-In Royalty Provision is to allow the lessee to temporarily suspend or shut-in production from a well on the leased property due to various reasons such as low commodity prices, lack of infrastructure, or any other economic or operational constraints. This provision provides relief and flexibility to the lessee in terms of not having to bear the burden of producing unprofitable or uneconomical oil or gas during certain periods. The Rental Lease Pooling Shut-In Royalty Provision typically specifies the conditions under which the lessee can invoke shut-in royalty payments. These conditions may include a minimum period of time for the shut-in, a statement of reasons justifying the shut-in, and the amount and frequency of shut-in royalty payments to be made to the lessor during the shut-in period. Shut-in royalty payments are additional compensation made to the lessor for temporary cessation of production. Different types of Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provisions may exist depending on the negotiated terms between the lessor and lessee. Some lease agreements may include specific triggers or requirements that must be met before the lessee can invoke shut-in royalty payments. For example, the lessee may need to provide evidence of a sustained period of low market prices or demonstrate that the cost of production exceeds the anticipated revenue. Moreover, the Rental Lease Pooling Shut-In Royalty Provision may also specify the duration of the shut-in period. This duration can vary depending on factors such as the prevailing market conditions, the expected time needed for infrastructure development, or operational constraints that need to be resolved. The shut-in period can range from a few months to several years, and the shut-in royalty payments are typically made on a regular basis throughout this duration. Overall, the Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an important aspect of oil and gas leases in the Fort Worth, Texas area. It allows for temporary suspension of production under certain circumstances while ensuring that the lessor receives additional compensation for the shut-in period. The specific terms and conditions of this provision may differ depending on the lease agreement, but it serves as a useful tool for both the lessor and lessee in managing and optimizing their interests in the oil and gas industry.Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause or provision that is commonly included in oil and gas leases in the Fort Worth, Texas area. This provision is specifically designed to protect the rights and interests of both the lessor (the mineral owner) and the lessee (the oil and gas company). The purpose of the Rental Lease Pooling Shut-In Royalty Provision is to allow the lessee to temporarily suspend or shut-in production from a well on the leased property due to various reasons such as low commodity prices, lack of infrastructure, or any other economic or operational constraints. This provision provides relief and flexibility to the lessee in terms of not having to bear the burden of producing unprofitable or uneconomical oil or gas during certain periods. The Rental Lease Pooling Shut-In Royalty Provision typically specifies the conditions under which the lessee can invoke shut-in royalty payments. These conditions may include a minimum period of time for the shut-in, a statement of reasons justifying the shut-in, and the amount and frequency of shut-in royalty payments to be made to the lessor during the shut-in period. Shut-in royalty payments are additional compensation made to the lessor for temporary cessation of production. Different types of Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provisions may exist depending on the negotiated terms between the lessor and lessee. Some lease agreements may include specific triggers or requirements that must be met before the lessee can invoke shut-in royalty payments. For example, the lessee may need to provide evidence of a sustained period of low market prices or demonstrate that the cost of production exceeds the anticipated revenue. Moreover, the Rental Lease Pooling Shut-In Royalty Provision may also specify the duration of the shut-in period. This duration can vary depending on factors such as the prevailing market conditions, the expected time needed for infrastructure development, or operational constraints that need to be resolved. The shut-in period can range from a few months to several years, and the shut-in royalty payments are typically made on a regular basis throughout this duration. Overall, the Fort Worth Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an important aspect of oil and gas leases in the Fort Worth, Texas area. It allows for temporary suspension of production under certain circumstances while ensuring that the lessor receives additional compensation for the shut-in period. The specific terms and conditions of this provision may differ depending on the lease agreement, but it serves as a useful tool for both the lessor and lessee in managing and optimizing their interests in the oil and gas industry.
