Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• City: Houston
• 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. A "Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells" is a legal document that modifies an existing oil and gas lease agreement in the Houston, Texas area. This amendment specifically adds a shut-in provision for oil wells. A shut-in provision allows the operator of an oil well to temporarily cease production without terminating the lease. This provision is usually included to give the operator flexibility during periods of low oil prices or when technical or market conditions make continued production unprofitable. The Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells ensures that the operator has the right to shut-in the production of oil wells without breaching the original lease agreement. It outlines the specific terms and conditions under which the shut-in provision can be activated, including the duration of the shut-in period, the notice requirements to the lessor, and any compensatory payments that may be due to the lessor during the shut-in period. There may be different types of Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells, depending on the specific needs and preferences of the parties involved. Some possible variations could include: 1. Short-term shut-in provision: This type of amendment allows the operator to temporarily shut-in the production for a limited period, usually up to one year. It may require the operator to provide regular updates on market conditions and actively seek alternate buyers for the produced oil during the shut-in period. 2. Long-term shut-in provision: This type of amendment allows the operator to shut-in the production for an extended period, typically more than one year. It may involve more stringent conditions and compensation requirements to protect the lessor's interests during a prolonged shut-in period. 3. Voluntary shut-in provision: This type of amendment allows the operator to voluntarily shut-in the production, even if market conditions are favorable. It may provide certain incentives or benefits to the operator, such as reduced or waived royalty payments during the shut-in period. 4. Mandatory shut-in provision: This type of amendment may be added due to regulatory requirements or provisions in the original lease agreement. It stipulates that the operator must shut-in the production under specific circumstances, such as when safety concerns arise, or in response to a government order or restriction. In conclusion, a Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a crucial legal document that modifies an oil and gas lease agreement to incorporate provisions allowing the temporary cessation of production for oil wells. The specific type of amendment can vary depending on the duration of the shut-in, optional or mandatory nature, and any additional conditions or compensations specified.

A "Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells" is a legal document that modifies an existing oil and gas lease agreement in the Houston, Texas area. This amendment specifically adds a shut-in provision for oil wells. A shut-in provision allows the operator of an oil well to temporarily cease production without terminating the lease. This provision is usually included to give the operator flexibility during periods of low oil prices or when technical or market conditions make continued production unprofitable. The Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells ensures that the operator has the right to shut-in the production of oil wells without breaching the original lease agreement. It outlines the specific terms and conditions under which the shut-in provision can be activated, including the duration of the shut-in period, the notice requirements to the lessor, and any compensatory payments that may be due to the lessor during the shut-in period. There may be different types of Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells, depending on the specific needs and preferences of the parties involved. Some possible variations could include: 1. Short-term shut-in provision: This type of amendment allows the operator to temporarily shut-in the production for a limited period, usually up to one year. It may require the operator to provide regular updates on market conditions and actively seek alternate buyers for the produced oil during the shut-in period. 2. Long-term shut-in provision: This type of amendment allows the operator to shut-in the production for an extended period, typically more than one year. It may involve more stringent conditions and compensation requirements to protect the lessor's interests during a prolonged shut-in period. 3. Voluntary shut-in provision: This type of amendment allows the operator to voluntarily shut-in the production, even if market conditions are favorable. It may provide certain incentives or benefits to the operator, such as reduced or waived royalty payments during the shut-in period. 4. Mandatory shut-in provision: This type of amendment may be added due to regulatory requirements or provisions in the original lease agreement. It stipulates that the operator must shut-in the production under specific circumstances, such as when safety concerns arise, or in response to a government order or restriction. In conclusion, a Houston Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a crucial legal document that modifies an oil and gas lease agreement to incorporate provisions allowing the temporary cessation of production for oil wells. The specific type of amendment can vary depending on the duration of the shut-in, optional or mandatory nature, and any additional conditions or compensations specified.