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.
League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual clause commonly found in oil and gas leases in the League City area of Texas. This provision outlines the conditions and regulations related to shut-in royalties in the event of the temporary suspension of oil and gas production. Shut-in royalties refer to the compensation paid by the lessee (the party who holds the lease) to the lessor (the landowner) when production is shut-in or temporarily suspended due to certain circumstances. The League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision defines the specific terms and conditions under which these royalties will be paid. Under this provision, there may be different types or variations depending on the negotiations between the lessee and the lessor. Some of these variations may include: 1. Standard shut-in royalty provision: This is the most common type, usually providing a fixed or agreed-upon amount of shut-in royalty compensation to be paid per acre or well, based on the agreed terms. 2. Time-limited shut-in royalty provision: This variation specifies a time limit during which the shut-in royalties will be paid. If the production remains shut-in beyond the agreed-upon period, further negotiations or amendments would be required. 3. Shut-in royalty waiver provision: In some cases, the lessor may agree to waive shut-in royalties altogether. This provision might be negotiated if the lessee can demonstrate valid economic or technical reasons for prolonged shut-in periods. 4. Shut-in royalty reduction provision: This provision allows for a decrease in the shut-in royalty payments after a certain period of time. It ensures that the lessor receives compensation for the initial shutdown period but acknowledges that reduced costs and revenues may justify lower royalty rates as time goes on. It is important for both parties to clearly understand the League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision and its implications. Specific details about payment amounts, conditions triggering shut-ins, and the duration of shut-in periods should be thoroughly discussed and documented within the lease agreement. By specifying the terms related to shut-in royalties, this provision provides clarity and protects the interests of both the lessee and the lessor in League City, Texas, ensuring a fair compensation arrangement during temporary production suspensions.League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual clause commonly found in oil and gas leases in the League City area of Texas. This provision outlines the conditions and regulations related to shut-in royalties in the event of the temporary suspension of oil and gas production. Shut-in royalties refer to the compensation paid by the lessee (the party who holds the lease) to the lessor (the landowner) when production is shut-in or temporarily suspended due to certain circumstances. The League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision defines the specific terms and conditions under which these royalties will be paid. Under this provision, there may be different types or variations depending on the negotiations between the lessee and the lessor. Some of these variations may include: 1. Standard shut-in royalty provision: This is the most common type, usually providing a fixed or agreed-upon amount of shut-in royalty compensation to be paid per acre or well, based on the agreed terms. 2. Time-limited shut-in royalty provision: This variation specifies a time limit during which the shut-in royalties will be paid. If the production remains shut-in beyond the agreed-upon period, further negotiations or amendments would be required. 3. Shut-in royalty waiver provision: In some cases, the lessor may agree to waive shut-in royalties altogether. This provision might be negotiated if the lessee can demonstrate valid economic or technical reasons for prolonged shut-in periods. 4. Shut-in royalty reduction provision: This provision allows for a decrease in the shut-in royalty payments after a certain period of time. It ensures that the lessor receives compensation for the initial shutdown period but acknowledges that reduced costs and revenues may justify lower royalty rates as time goes on. It is important for both parties to clearly understand the League City Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision and its implications. Specific details about payment amounts, conditions triggering shut-ins, and the duration of shut-in periods should be thoroughly discussed and documented within the lease agreement. By specifying the terms related to shut-in royalties, this provision provides clarity and protects the interests of both the lessee and the lessor in League City, Texas, ensuring a fair compensation arrangement during temporary production suspensions.
