A Phoenix Arizona Affidavit of Production to Extend Oil and Gas Lease Beyond Primary Term is a legal document used in the state of Arizona to extend an oil and gas lease beyond its initial primary term. This affidavit is a testament to the production activities carried out on the leased property, demonstrating that the lease continues to be economically viable and warrants an extension. The purpose of the Affidavit of Production is to prove that the leased property is still actively producing oil and gas, and thus justifies the continuation of the lease agreement. By providing verifiable evidence, such as production records, well logs, and other relevant documents, the affidavit strengthens the lessee's position in requesting an extension. In Phoenix Arizona, there are different types of Affidavits of Production to Extend Oil and Gas Lease Beyond Primary Term that may be used based on specific circumstances. These variations can include: 1. Standard Affidavit of Production: This is the most common type and is used when there is a steady and continuous production of oil and gas from the leased property. It highlights the total production volume, well bore details, and any additional relevant information. 2. Affidavit of Production with Enhanced Recovery Techniques: This type of affidavit is employed when advanced recovery techniques, such as hydraulic fracturing or enhanced oil recovery methods, are used to boost production from the property. It focuses on the specific techniques employed and their effectiveness in maximizing oil and gas extraction. 3. Affidavit of Production with Development Plan: In situations where the lessee plans to carry out additional development activities or drilling operations in the future, this affidavit is utilized. It outlines the proposed development plan, including the estimated timeline, well locations, and anticipated production volumes. 4. Affidavit of Production with Reservoir Analysis: When there is ambiguity regarding the future productivity of the leased property, a reservoir analysis may be conducted. This affidavit presents the results of reservoir simulation, well testing, or any other assessment methodologies, providing insight into the potential for continued production. In conclusion, a Phoenix Arizona Affidavit of Production to Extend Oil and Gas Lease Beyond Primary Term is a crucial document for lessees seeking an extension of their oil and gas lease. It outlines the production activities that have taken place on the property and supports the argument for continued operation. Utilizing different types of affidavits based on specific circumstances allows for a comprehensive demonstration of the lease's economic viability and eventual extension.
Phoenix Arizona Affidavit of Production to Extend Oil and Gas Lease Beyond Primary Term
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How to fill out Phoenix Arizona Affidavit Of Production To Extend Oil And Gas Lease Beyond Primary Term?
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FAQ
An oil or gas lease is a legal document where a landowner grants an individual or company the right to extract oil or gas from beneath the landowner's property. Courts generally find leases to be legally binding, so it is very important that you understand all the terms of a lease before you sign it.
Defining the Pugh Clause A Pugh Clause is meant to prevent a lessee from declaring all lands under an oil and gas lease as being held by production, even if production only occurs on a fraction of the property.
Landowners who are considering purchasing, or have already purchased a property can search their county Register of Deeds registry to determine if an oil and gas lease is recorded.
A horizontal Pugh clause ?has the effect of severing a leasehold as to the pooled and non-pooled portions on the basis of horizontal planes,? while a vertical Pugh clause ?has the effect of severing a leasehold on the basis of vertical planes only.?9 This means a Pugh clause can be structured by depth (e.g., severing
Created by Australian Robert Torrens in the 1850s, Alberta uses the Torrens land title system, itself based on the shipping registry. First used in Vancouver island in 1861, the Torrens system was adopted in Alberta in 1887 and has remained the main system ever since.
The primary term of a federal oil and gas lease is 10 years. The term is extended as long as the lease has at least one well capable of production.
How long does oil and gas lease last? There are two terms in a gas and oil lease: known as the primary term and the secondary term. Normally, the primary term is for a specific amount of time which lasts between the period of 1, 3, 5, 7 or 10 years.
In general terms, the Pugh Clause provides that production from a unitized or pooled area located on or including a portion of the leased lands will not be sufficient to extend the primary term for the entire leasehold.
A lease bonus is a one-time payment the mineral rights owner receives when the lease is signed. Royalty is a portion of the proceeds from the sale of production which is paid monthly to the mineral rights owner. The royalty is usually described in the lease as a fraction such as 1/8th, or 1/6th.
If the lessee is engaged in drilling operations at the expiration of the primary term of the lease,9 the lease term will be extended for an additional two years if certain requirements are met. 10 Actual drilling operations that penetrate the earth are required.
