Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• County: Cook
• Control #: US-OG-576
• Format: Word; Rich Text

Description

This is a form of an Amendment to an Oil and Gas Lease to Add a Shut-in Royalty Provision For Oil Wells. The Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells refers to a specific clause that can be added to an oil and gas lease agreement in the Cook County, Illinois area. This amendment allows the oil well operator to temporarily cease production while keeping the lease in effect, under certain circumstances. The purpose of this amendment is to provide flexibility to the operator by adding a shut-in provision, which becomes effective when specific conditions are met. This provision allows the operator to temporarily halt production when oil prices are low, when the well is undergoing maintenance, or when the well is temporarily unprofitable to operate. By doing so, the operator can minimize losses and preserve the lease for future profitable operations. The Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is advantageous for both the operator and the lessor. The operator benefits by reducing costs during periods of low profitability and by maintaining the lease for future operations. The lessor benefits by ensuring the continuity of the lease agreement and the potential for future royalties once production resumes. It is important to note that there can be different types or variations of the Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells, depending on the specific terms and conditions outlined in the lease agreement. Some of these may include: 1. Temporary Shut-In Provision: This type of provision allows the operator to temporarily shut down the well for a defined period, such as six months or one year. The shut-in period can be extended if certain conditions persist. 2. Shut-In Provision for Low Prices: This provision allows the operator to shut-in the well when oil prices fall below a certain predetermined threshold. This ensures that the operator doesn't operate at a loss during periods of exceptionally low prices. 3. Maintenance Shut-In Provision: This type of provision allows the operator to shut-in the well for maintenance and repair purposes. It ensures that the operator can conduct necessary repairs and optimize production without breaching the lease agreement. 4. Shut-In Provision due to Profitability: In cases where the operating costs of the well exceed the revenue generated, this provision allows the operator to shut-in the well until profitability can be regained. This can occur due to rising costs or other factors impacting production economics. In conclusion, the Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a valuable addition to an oil and gas lease agreement. It provides flexibility to operators in the Cook County, Illinois area, allowing them to temporarily cease production under specific circumstances. Different types of shut-in provisions can be included in the amendment, such as temporary shut-ins, shut-ins for low prices, maintenance shut-ins, and shut-ins due to profitability.

The Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells refers to a specific clause that can be added to an oil and gas lease agreement in the Cook County, Illinois area. This amendment allows the oil well operator to temporarily cease production while keeping the lease in effect, under certain circumstances. The purpose of this amendment is to provide flexibility to the operator by adding a shut-in provision, which becomes effective when specific conditions are met. This provision allows the operator to temporarily halt production when oil prices are low, when the well is undergoing maintenance, or when the well is temporarily unprofitable to operate. By doing so, the operator can minimize losses and preserve the lease for future profitable operations. The Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is advantageous for both the operator and the lessor. The operator benefits by reducing costs during periods of low profitability and by maintaining the lease for future operations. The lessor benefits by ensuring the continuity of the lease agreement and the potential for future royalties once production resumes. It is important to note that there can be different types or variations of the Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells, depending on the specific terms and conditions outlined in the lease agreement. Some of these may include: 1. Temporary Shut-In Provision: This type of provision allows the operator to temporarily shut down the well for a defined period, such as six months or one year. The shut-in period can be extended if certain conditions persist. 2. Shut-In Provision for Low Prices: This provision allows the operator to shut-in the well when oil prices fall below a certain predetermined threshold. This ensures that the operator doesn't operate at a loss during periods of exceptionally low prices. 3. Maintenance Shut-In Provision: This type of provision allows the operator to shut-in the well for maintenance and repair purposes. It ensures that the operator can conduct necessary repairs and optimize production without breaching the lease agreement. 4. Shut-In Provision due to Profitability: In cases where the operating costs of the well exceed the revenue generated, this provision allows the operator to shut-in the well until profitability can be regained. This can occur due to rising costs or other factors impacting production economics. In conclusion, the Cook Illinois Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a valuable addition to an oil and gas lease agreement. It provides flexibility to operators in the Cook County, Illinois area, allowing them to temporarily cease production under specific circumstances. Different types of shut-in provisions can be included in the amendment, such as temporary shut-ins, shut-ins for low prices, maintenance shut-ins, and shut-ins due to profitability.