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 San Antonio Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause that is commonly found in oil and gas lease agreements in the San Antonio region of Texas. This provision is designed to address the situation where production on a lease is temporarily halted or "shut-in" due to various circumstances. The purpose of the Rental Lease Pooling Shut-In Royalty Provision is to allow the mineral rights owner or lessee to receive a shut-in royalty payment when production is suspended. This provision serves as a mechanism to compensate the leaseholder for the inability to produce and sell the minerals due to reasons beyond their control, such as low market prices, operational issues, or lack of infrastructure. The key aspect of this provision is that it allows the lessee to suspend production without losing their lease rights. In return, the lessee must pay a shut-in royalty to the lessor, which is typically a reduced payment compared to the regular royalties received during active production. The payment amount and duration of the shut-in period are usually negotiated between the parties and specified in the lease agreement. The shut-in royalty payment compensates the lessor for the loss of income during the shut-in period and ensures that the lease remains in effect, providing the opportunity to resume production once the circumstances improve. It allows lessees to temporarily halt operations when it is not economically viable to produce at the existing market prices, without the fear of losing their leasehold interests. It's worth noting that there may be variations of this provision depending on the specifics of each lease agreement. Different types or versions may exist within the San Antonio Texas Producers 88 (8/99) rental lease pooling shut-in royalty provision, such as variations in the shut-in payment calculation method, shut-in period duration, or other specific terms negotiated between the parties involved. Overall, the San Antonio Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas lease agreements in the San Antonio region, offering protection for both mineral rights owners and lessees in situations where temporary production suspension becomes necessary.The San Antonio Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a clause that is commonly found in oil and gas lease agreements in the San Antonio region of Texas. This provision is designed to address the situation where production on a lease is temporarily halted or "shut-in" due to various circumstances. The purpose of the Rental Lease Pooling Shut-In Royalty Provision is to allow the mineral rights owner or lessee to receive a shut-in royalty payment when production is suspended. This provision serves as a mechanism to compensate the leaseholder for the inability to produce and sell the minerals due to reasons beyond their control, such as low market prices, operational issues, or lack of infrastructure. The key aspect of this provision is that it allows the lessee to suspend production without losing their lease rights. In return, the lessee must pay a shut-in royalty to the lessor, which is typically a reduced payment compared to the regular royalties received during active production. The payment amount and duration of the shut-in period are usually negotiated between the parties and specified in the lease agreement. The shut-in royalty payment compensates the lessor for the loss of income during the shut-in period and ensures that the lease remains in effect, providing the opportunity to resume production once the circumstances improve. It allows lessees to temporarily halt operations when it is not economically viable to produce at the existing market prices, without the fear of losing their leasehold interests. It's worth noting that there may be variations of this provision depending on the specifics of each lease agreement. Different types or versions may exist within the San Antonio Texas Producers 88 (8/99) rental lease pooling shut-in royalty provision, such as variations in the shut-in payment calculation method, shut-in period duration, or other specific terms negotiated between the parties involved. Overall, the San Antonio Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas lease agreements in the San Antonio region, offering protection for both mineral rights owners and lessees in situations where temporary production suspension becomes necessary.
