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.
The Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a provision within the oil and gas industry that aims to protect operators and royalty owners in Grand Prairie, Texas. This provision defines the conditions under which a lease pooling shut-in royalty can be applied. Lease pooling refers to the consolidation of multiple land leases into a single unit to maximize production efficiency. By pooling the leases, operators can extract oil and gas resources more effectively, reducing costs and minimizing environmental impact. However, in certain scenarios, production may need to be temporarily halted due to various reasons such as market conditions, limited infrastructure, or technical difficulties. This is where the shut-in royalty provision comes into play. The shut-in royalty provision allows operators to temporarily suspend production without terminating the lease, while still maintaining payment obligations to royalty owners. In other words, during the shut-in period, the operator pays the royalty owners a predetermined shut-in royalty fee, typically a fixed amount or a percentage of the average monthly royalty payments, to compensate for the loss of production income. The Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision ensures that both the operators and the royalty owners have a fair agreement in place, protecting each party's interests. It establishes the conditions for applying shut-in royalties, including the duration of the shut-in period, the shut-in royalty rate, and the notifications required to initiate and terminate the shut-in status. It is worth mentioning that there may be variations or different types of the Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, depending on specific lease agreements and individual circumstances. These variations may include different shut-in royalty rates, definitions of shut-in conditions, and procedures for invoking the shut-in provision. Understanding the Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is crucial for both operators and royalty owners in Grand Prairie, Texas. It ensures a transparent and fair agreement that balances the need for temporary production suspension with the protection of royalty interests.The Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a provision within the oil and gas industry that aims to protect operators and royalty owners in Grand Prairie, Texas. This provision defines the conditions under which a lease pooling shut-in royalty can be applied. Lease pooling refers to the consolidation of multiple land leases into a single unit to maximize production efficiency. By pooling the leases, operators can extract oil and gas resources more effectively, reducing costs and minimizing environmental impact. However, in certain scenarios, production may need to be temporarily halted due to various reasons such as market conditions, limited infrastructure, or technical difficulties. This is where the shut-in royalty provision comes into play. The shut-in royalty provision allows operators to temporarily suspend production without terminating the lease, while still maintaining payment obligations to royalty owners. In other words, during the shut-in period, the operator pays the royalty owners a predetermined shut-in royalty fee, typically a fixed amount or a percentage of the average monthly royalty payments, to compensate for the loss of production income. The Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision ensures that both the operators and the royalty owners have a fair agreement in place, protecting each party's interests. It establishes the conditions for applying shut-in royalties, including the duration of the shut-in period, the shut-in royalty rate, and the notifications required to initiate and terminate the shut-in status. It is worth mentioning that there may be variations or different types of the Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, depending on specific lease agreements and individual circumstances. These variations may include different shut-in royalty rates, definitions of shut-in conditions, and procedures for invoking the shut-in provision. Understanding the Grand Prairie Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is crucial for both operators and royalty owners in Grand Prairie, Texas. It ensures a transparent and fair agreement that balances the need for temporary production suspension with the protection of royalty interests.
