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.
McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual agreement that applies to oil and gas leases in McAllen, Texas. This provision outlines the conditions under which royalty payments can be temporarily discontinued or reduced due to certain circumstances. The purpose of the McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is to protect the lessee (the party producing oil or gas) from financial burdens or unfavorable market conditions that may render production temporarily unprofitable or impractical. It offers a mechanism to suspend or adjust royalty payments to ensure fairness and sustainability for both parties involved. Depending on the exact terms of the lease agreement, there may be different types of McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provisions available. Some possible variations may include: 1. Full Shut-In Royalty Provision: This provision allows the lessee to completely halt royalty payments when production is shut-in due to reasons such as low market prices, excessive operating costs, or technical difficulties. In this case, no royalty payments will be made until production resumes or specific recovery thresholds are met. 2. Partial Shut-In Royalty Provision: This provision enables the lessee to reduce royalty payments to a predetermined percentage when production is partially interrupted or restricted. The reduced royalty is calculated based on the percentage of the total capacity at which production is maintained. 3. Time-Limited Shut-In Royalty Provision: This provision permits the lessee to temporarily suspend royalty payments for a specified period. It can apply when production is temporarily ceased due to equipment maintenance, facility upgrades, or any other valid reason. 4. Shut-In Royalty Rate Adjustment Provision: This provision allows for the adjustment of royalty rates during periods of shut-in. It may specify a reduced royalty rate that applies when production is shut-in, ensuring that the lessee pays a fair amount during such periods. It is essential for the lessor (the party receiving royalty payments) to carefully review and negotiate the terms of the McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision to ensure it aligns with their best interests. This provision offers flexibility and protection for both parties, striking a balance between sustaining oil and gas operations and safeguarding the economic viability of the lease.McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a contractual agreement that applies to oil and gas leases in McAllen, Texas. This provision outlines the conditions under which royalty payments can be temporarily discontinued or reduced due to certain circumstances. The purpose of the McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is to protect the lessee (the party producing oil or gas) from financial burdens or unfavorable market conditions that may render production temporarily unprofitable or impractical. It offers a mechanism to suspend or adjust royalty payments to ensure fairness and sustainability for both parties involved. Depending on the exact terms of the lease agreement, there may be different types of McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provisions available. Some possible variations may include: 1. Full Shut-In Royalty Provision: This provision allows the lessee to completely halt royalty payments when production is shut-in due to reasons such as low market prices, excessive operating costs, or technical difficulties. In this case, no royalty payments will be made until production resumes or specific recovery thresholds are met. 2. Partial Shut-In Royalty Provision: This provision enables the lessee to reduce royalty payments to a predetermined percentage when production is partially interrupted or restricted. The reduced royalty is calculated based on the percentage of the total capacity at which production is maintained. 3. Time-Limited Shut-In Royalty Provision: This provision permits the lessee to temporarily suspend royalty payments for a specified period. It can apply when production is temporarily ceased due to equipment maintenance, facility upgrades, or any other valid reason. 4. Shut-In Royalty Rate Adjustment Provision: This provision allows for the adjustment of royalty rates during periods of shut-in. It may specify a reduced royalty rate that applies when production is shut-in, ensuring that the lessee pays a fair amount during such periods. It is essential for the lessor (the party receiving royalty payments) to carefully review and negotiate the terms of the McAllen Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision to ensure it aligns with their best interests. This provision offers flexibility and protection for both parties, striking a balance between sustaining oil and gas operations and safeguarding the economic viability of the lease.
