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 Houston Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual agreement commonly used in the oil and gas industry. It specifically pertains to the pooled leasing and rental arrangements for properties in the Houston, Texas area. This provision outlines the royalty provisions in case the oil or gas production is temporarily shut-in or curtailed due to specific circumstances. The purpose of this provision is to provide a mechanism for compensating the lessor, who is the owner of the mineral rights, when the lessee, typically an oil and gas company, is unable to produce due to certain conditions. These conditions may include market fluctuations, regulatory restrictions, shortage of infrastructure, weather-related incidents, or technical problems. The provision ensures that the lessor continues to receive a fair share of the royalty payments, even if the production is temporarily halted or reduced. It sets forth the terms and conditions under which the lease will remain in effect during the shut-in period and specifies the rate at which the royalty payment will be made. The Houston Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may have different variations or types based on the specific circumstances and negotiations between the lessor and lessee. It is important to review the specific language of the provision to understand its scope and applicability to a particular lease agreement. The provision may include additional terms such as the duration of the shut-in period, the calculation method for the shut-in royalty payment, the rights and obligations of both parties during this period, and any provisions for extending the shutdown without termination of the lease. Overall, this provision protects the interests of both the lessor and lessee by ensuring that the lessor continues to receive a fair share of the royalty payments during temporary shutdowns, while also allowing the lessee some flexibility in managing production operations in challenging situations.The Houston Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual agreement commonly used in the oil and gas industry. It specifically pertains to the pooled leasing and rental arrangements for properties in the Houston, Texas area. This provision outlines the royalty provisions in case the oil or gas production is temporarily shut-in or curtailed due to specific circumstances. The purpose of this provision is to provide a mechanism for compensating the lessor, who is the owner of the mineral rights, when the lessee, typically an oil and gas company, is unable to produce due to certain conditions. These conditions may include market fluctuations, regulatory restrictions, shortage of infrastructure, weather-related incidents, or technical problems. The provision ensures that the lessor continues to receive a fair share of the royalty payments, even if the production is temporarily halted or reduced. It sets forth the terms and conditions under which the lease will remain in effect during the shut-in period and specifies the rate at which the royalty payment will be made. The Houston Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may have different variations or types based on the specific circumstances and negotiations between the lessor and lessee. It is important to review the specific language of the provision to understand its scope and applicability to a particular lease agreement. The provision may include additional terms such as the duration of the shut-in period, the calculation method for the shut-in royalty payment, the rights and obligations of both parties during this period, and any provisions for extending the shutdown without termination of the lease. Overall, this provision protects the interests of both the lessor and lessee by ensuring that the lessor continues to receive a fair share of the royalty payments during temporary shutdowns, while also allowing the lessee some flexibility in managing production operations in challenging situations.
