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.
Odessa Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas leases in the Odessa region, Texas. This provision outlines the various terms and conditions regarding the shut-in royalty payment arrangements in a pooling lease agreement. Keywords related to this topic could include Odessa Texas, Producers 88 (8/99), Rental Lease, Pooling, Shut-In Royalty Provision, oil and gas leases, and Odessa region. The shut-in royalty provision allows the lessee (an oil and gas company) to temporarily suspend production operations due to unforeseen circumstances or conditions that render ongoing production economically unviable or impractical. This provision primarily protects the lessee's rights and ensures fair compensation for the lessor (property owner) during the shut-in period. Moreover, it also allows for efficient resource management and provides stability to the overall production process. In Odessa, Texas, the Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is further categorized into different types based on specific terms and conditions. These variations cater to the diverse needs and requirements of the lessee and lessor. Some commonly known types include: 1. Fixed Shut-In Royalty Provision: Under this type, a predetermined fixed amount is agreed upon between the lessee and lessor as a shut-in royalty payment. This provision ensures a steady income for the lessor during the shut-in period and helps alleviate any financial burden caused by the temporary suspension of production operations. 2. Percentage-based Shut-In Royalty Provision: In this variation, the shut-in royalty payment is determined as a percentage of the royalty payment the lessor would have received if production operations were ongoing. This type of provision ensures that the lessor receives a fair share of the potential revenue, maintaining a reasonable balance between the interests of both parties during the shut-in period. 3. Duration-specific Shut-In Royalty Provision: This type of provision sets a specific duration for the shut-in period during which the lessee can suspend production operations without drilling a new well or completing the existing well. It includes clauses that specify the timeframe and conditions under which the shut-in royalty provision remains applicable. 4. Force Mature Shut-In Royalty Provision: This variation accounts for unforeseeable events or circumstances such as natural disasters, civil unrest, or government regulations that may force the temporary suspension of production operations. The provision allows for shut-in royalty payments even in situations beyond the control of the lessee, ensuring fair compensation for the lessor. The Odessa Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, with its various types, plays a vital role in maintaining equilibrium between the interests of the lessee and lessor. It provides financial security for the lessor during unforeseen production interruptions while enabling the lessee to optimize resource management and operational efficiency in the Odessa region, Texas.Odessa Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas leases in the Odessa region, Texas. This provision outlines the various terms and conditions regarding the shut-in royalty payment arrangements in a pooling lease agreement. Keywords related to this topic could include Odessa Texas, Producers 88 (8/99), Rental Lease, Pooling, Shut-In Royalty Provision, oil and gas leases, and Odessa region. The shut-in royalty provision allows the lessee (an oil and gas company) to temporarily suspend production operations due to unforeseen circumstances or conditions that render ongoing production economically unviable or impractical. This provision primarily protects the lessee's rights and ensures fair compensation for the lessor (property owner) during the shut-in period. Moreover, it also allows for efficient resource management and provides stability to the overall production process. In Odessa, Texas, the Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is further categorized into different types based on specific terms and conditions. These variations cater to the diverse needs and requirements of the lessee and lessor. Some commonly known types include: 1. Fixed Shut-In Royalty Provision: Under this type, a predetermined fixed amount is agreed upon between the lessee and lessor as a shut-in royalty payment. This provision ensures a steady income for the lessor during the shut-in period and helps alleviate any financial burden caused by the temporary suspension of production operations. 2. Percentage-based Shut-In Royalty Provision: In this variation, the shut-in royalty payment is determined as a percentage of the royalty payment the lessor would have received if production operations were ongoing. This type of provision ensures that the lessor receives a fair share of the potential revenue, maintaining a reasonable balance between the interests of both parties during the shut-in period. 3. Duration-specific Shut-In Royalty Provision: This type of provision sets a specific duration for the shut-in period during which the lessee can suspend production operations without drilling a new well or completing the existing well. It includes clauses that specify the timeframe and conditions under which the shut-in royalty provision remains applicable. 4. Force Mature Shut-In Royalty Provision: This variation accounts for unforeseeable events or circumstances such as natural disasters, civil unrest, or government regulations that may force the temporary suspension of production operations. The provision allows for shut-in royalty payments even in situations beyond the control of the lessee, ensuring fair compensation for the lessor. The Odessa Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, with its various types, plays a vital role in maintaining equilibrium between the interests of the lessee and lessor. It provides financial security for the lessor during unforeseen production interruptions while enabling the lessee to optimize resource management and operational efficiency in the Odessa region, Texas.