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 Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas lease agreements in the Wichita Falls region of Texas. This provision outlines the specific conditions under which the royalty payments to the lessor (landowner) may be halted or reduced temporarily. By incorporating relevant keywords, this description aims to concisely explain the purpose and significance of this provision: Keywords: Wichita Falls Texas, Producers 88 (8/99), Rental Lease, Pooling, Shut-In Royalty Provision, oil and gas lease agreements Description: The Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an integral clause in oil and gas lease agreements within the Wichita Falls region of Texas. This provision serves as a legal mechanism to address specific conditions and circumstances that may impact the regular royalty payments to the landowners or lessors. The provision allows for the pooling of multiple leases, meaning that multiple landowners can combine their interests into a single entity. This pooling practice is quite common in the oil and gas industry and offers operational efficiency and cost savings for companies. The shut-in royalty provision within this agreement is designed to provide protection to both parties involved. It allows the lessee (the company extracting or producing oil and gas) to temporarily halt or reduce royalty payments to the lessor when certain outlined conditions are met. There can be different types of Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, including but not limited to: 1. Traditional Shut-In Provision: This type of provision is applied when the lessee, due to specific circumstances like unforeseen mechanical issues, lack of pipelines, or low market prices, is unable to produce oil or gas. The provision temporarily suspends the royalty payments, providing relief to the lessee until production resumes. 2. Economic Shut-In Provision: This provision comes into effect when the market prices for oil or gas fall below a certain predetermined threshold, making production economically unviable. In such cases, the lessee can temporarily shut-in production and reduce royalty payments accordingly. 3. Force Mature Shut-In Provision: This type of provision is invoked when external factors such as natural disasters, war, government regulations, or other unforeseeable events prevent or obstruct normal production activities. The royalty payments are either halted or reduced until the situation improves, ensuring fairness to both parties involved. In conclusion, the Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a vital component of oil and gas lease agreements. By allowing for temporary suspension or reduction of royalties in specific circumstances, this provision provides the flexibility and protection required by both lessees and lessors in the dynamic oil and gas industry.The Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a crucial component of oil and gas lease agreements in the Wichita Falls region of Texas. This provision outlines the specific conditions under which the royalty payments to the lessor (landowner) may be halted or reduced temporarily. By incorporating relevant keywords, this description aims to concisely explain the purpose and significance of this provision: Keywords: Wichita Falls Texas, Producers 88 (8/99), Rental Lease, Pooling, Shut-In Royalty Provision, oil and gas lease agreements Description: The Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is an integral clause in oil and gas lease agreements within the Wichita Falls region of Texas. This provision serves as a legal mechanism to address specific conditions and circumstances that may impact the regular royalty payments to the landowners or lessors. The provision allows for the pooling of multiple leases, meaning that multiple landowners can combine their interests into a single entity. This pooling practice is quite common in the oil and gas industry and offers operational efficiency and cost savings for companies. The shut-in royalty provision within this agreement is designed to provide protection to both parties involved. It allows the lessee (the company extracting or producing oil and gas) to temporarily halt or reduce royalty payments to the lessor when certain outlined conditions are met. There can be different types of Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision, including but not limited to: 1. Traditional Shut-In Provision: This type of provision is applied when the lessee, due to specific circumstances like unforeseen mechanical issues, lack of pipelines, or low market prices, is unable to produce oil or gas. The provision temporarily suspends the royalty payments, providing relief to the lessee until production resumes. 2. Economic Shut-In Provision: This provision comes into effect when the market prices for oil or gas fall below a certain predetermined threshold, making production economically unviable. In such cases, the lessee can temporarily shut-in production and reduce royalty payments accordingly. 3. Force Mature Shut-In Provision: This type of provision is invoked when external factors such as natural disasters, war, government regulations, or other unforeseeable events prevent or obstruct normal production activities. The royalty payments are either halted or reduced until the situation improves, ensuring fairness to both parties involved. In conclusion, the Wichita Falls Texas Producers 88 (8/99) Rental Lease Pooling Shut-In Royalty Provision is a vital component of oil and gas lease agreements. By allowing for temporary suspension or reduction of royalties in specific circumstances, this provision provides the flexibility and protection required by both lessees and lessors in the dynamic oil and gas industry.
