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 Waco Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a significant component of oil and gas lease agreements in Waco, Texas. This provision is specifically relevant for oil and gas producers operating in the region and aims to address shut-in scenarios where production is temporarily halted due to uncontrollable circumstances. The purpose of the Rental Lease Pooling Shut-In Royalty Provision is to protect the interests of both the lessor and the lessee during shut-in periods, ensuring a fair distribution of financial obligations and royalties. When production is shut-in due to factors such as market conditions, regulatory restrictions, or technical issues, this provision allows for a temporary cessation of the royalty payment obligation and the suspension of lease operations. Under the Waco Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, there may be different types or variations available to cater to specific circumstances. Some of these variations include: 1. Voluntary Shut-In: This type occurs when the lessee voluntarily shuts down production due to market fluctuations or other strategic reasons. In such cases, the lessee may invoke the shut-in provision to temporarily halt operations and royalty payments while preserving the lease. 2. Regulatory Shut-In: Sometimes, regulatory agencies may impose restrictions or temporary bans on oil and gas production in certain areas. In such cases, the shut-in provision would protect the lessee from royalty obligations during the period of regulatory shut-in. 3. Force Mature Shut-In: Force majeure events, such as natural disasters, pandemics, or political unrest, can cause the temporary suspension of operations. This type of shut-in provision ensures that the lessee is not held accountable for royalty payments during these unforeseeable circumstances. 4. Mechanical Shut-In: Technical malfunctions or breakdowns in equipment may necessitate a shut-in to repair or replace the faulty components. The shut-in provision ensures that the lessee is not burdened with royalty obligations during the shutdown resulting from mechanical issues. In summary, the Waco Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial element of lease agreements, providing mechanisms to pause royalty payments and protect the interests of both parties during shut-in periods. It encompasses various types such as voluntary, regulatory, force majeure, and mechanical shut-ins, ensuring a fair and balanced approach to temporary production suspensions.
