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.
Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific clause included in oil and gas lease agreements that enables pooling of multiple leases in the Lewisville, Texas area. This provision ensures that if production is temporarily halted or "shut-in" due to economic or operational reasons, the lessor (the landowner) will still receive a royalty payment. The Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision plays a crucial role in minimizing financial losses for both the lessor and the lessee (the oil and gas company). When wells are shut-in, typically due to low oil prices, the lessee can continue the lease without abandoning it completely. The pooling aspect allows the oil and gas company to consolidate multiple leases into one unit for efficient operations and cost savings. The shut-in royalty provision guarantees that the lessor will receive a percentage of the contractual royalty rate even when the wells are not actively producing. This royalty payment provides some financial stability and compensation for the lessor during the period of shut-in, which may last for a predetermined time or until production resumes. It is worth mentioning that the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may have different variations or specific terms tailored to individual lease agreements. Some variations may include additional clauses specifying conditions for declaring shut-in, limitations on the duration of shut-in, or the calculation method for determining the shut-in royalty rate. By implementing the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, both lessors and lessees can benefit from the flexibility it offers during challenging market conditions. This provision ensures that landowners continue to receive compensation while the lessees can navigate temporary disruptions in production, strike a balance between profitability and conservation, and sustain a long-term business relationship with the lessors. In summary, the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an essential clause in lease agreements that enables efficient pooling of leases and guarantees royalty payments to lessors even during temporary suspensions of oil and gas production. Though there may be different variations of this provision, it's overarching purpose is to maintain a mutually beneficial relationship between landowners and oil and gas companies operating in the Lewisville, Texas area.Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a specific clause included in oil and gas lease agreements that enables pooling of multiple leases in the Lewisville, Texas area. This provision ensures that if production is temporarily halted or "shut-in" due to economic or operational reasons, the lessor (the landowner) will still receive a royalty payment. The Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision plays a crucial role in minimizing financial losses for both the lessor and the lessee (the oil and gas company). When wells are shut-in, typically due to low oil prices, the lessee can continue the lease without abandoning it completely. The pooling aspect allows the oil and gas company to consolidate multiple leases into one unit for efficient operations and cost savings. The shut-in royalty provision guarantees that the lessor will receive a percentage of the contractual royalty rate even when the wells are not actively producing. This royalty payment provides some financial stability and compensation for the lessor during the period of shut-in, which may last for a predetermined time or until production resumes. It is worth mentioning that the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision may have different variations or specific terms tailored to individual lease agreements. Some variations may include additional clauses specifying conditions for declaring shut-in, limitations on the duration of shut-in, or the calculation method for determining the shut-in royalty rate. By implementing the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, both lessors and lessees can benefit from the flexibility it offers during challenging market conditions. This provision ensures that landowners continue to receive compensation while the lessees can navigate temporary disruptions in production, strike a balance between profitability and conservation, and sustain a long-term business relationship with the lessors. In summary, the Lewisville Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an essential clause in lease agreements that enables efficient pooling of leases and guarantees royalty payments to lessors even during temporary suspensions of oil and gas production. Though there may be different variations of this provision, it's overarching purpose is to maintain a mutually beneficial relationship between landowners and oil and gas companies operating in the Lewisville, Texas area.
