Travis Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells provides crucial provisions that allow the lessee to temporarily cease production from oil wells. This amendment is essential in situations where market conditions are unfavorable, machinery needs repair, or additional infrastructure is required to extract oil efficiently. By incorporating a shut-in provision, lessees in Travis Texas can prevent significant losses and maintain effective operations while overcoming these challenges. One type of Travis Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is the "Temporary Shut-In Provision." This provision permits lessees to temporarily halt oil production and preserve the reserves for future extraction. This is particularly beneficial during periods of low oil prices or when necessary equipment maintenance or upgrades are underway. The temporary shut-in provision enables lessees to avoid wastage and financial losses during these downtime periods. Another type of amendment is the "Long-Term Shut-In Provision," which grants lessees the option to cease production from oil wells for an extended duration. This provision can be crucial when lessees anticipate a persistently challenging market environment that could lead to significant financial burdens from continued operations. By invoking the long-term shut-in provision, lessees can conserve resources until market conditions improve, ensuring sustainable profitability. This Travis Texas Amendment to Oil and Gas Lease also incorporates a "Notice and Compensation Provision." When activating the shut-in provision, lessees must provide notice to the lessor, detailing the duration and reason for the shut-in. This notice ensures transparency and fosters a cooperative working relationship between both parties. Additionally, the compensation provision outlines the monetary consideration the lessee must provide to the lessor during the shut-in period, ensuring fair compensation for the loss of potential income. In conclusion, the Travis Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells offers essential flexibility and protection to lessees in the oil and gas industry. By including various shut-in provisions such as the temporary shut-in and long-term shut-in provisions, lessees can effectively manage production, preserve resources, and maintain profitability even in challenging market conditions. The notice and compensation provision further ensures transparency and equitable compensation between the lessee and the lessor.
Travis Texas Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells
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(a) (1) Any lease of oil or natural gas rights or any other conveyance of any kind separating such rights from the freehold estate of land shall expire at the end of ten (10) years from the date executed, unless, at the end of such ten (10) years, natural gas or oil is being produced from such land for commercial
Well Classifications There are six main classification within the life cycle of an oil or natural gas well. A well may be Active, Inactive, Suspended, Abandoned, Orphaned or Reclaimed. The life cycle of any well begins with an active classification and ends after reclamation.
Definition of 'shut in a well' The company had to shut in a well that began producing water in order to prevent contamination of the dry oil from other wells when production was commingled. To shut in a well is to close off a well so that it stops producing.
Shut in a well in the Oil and Gas Industry (0283028ct 026an 0259 w025bl) phrase. (Extractive engineering: Field development, Drilling) To shut in a well is to close off a well so that it stops producing. An emergency shutdown valve was installed on the wellhead to shut in the well at any time.
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.
1. n. Well Testing A well with a valve closed to halt production. Wells are often closed in for a period of time to allow stabilization prior to beginning a drawdown-buildup test sequence.
After obtaining production from a previously shut-in well, the well may be shut in again for a maximum term of five years as provided in the lease and subsection (h)(1) of this section.
A payment stipulated in the oil and gas lease, which royalty owners receive in lieu of actual production, when a gas well is shut-in due to lack of a suitable market, a lack of facilities to produce the product, or other cases defined within the shut-in provisions contained in the oil and gas lease.
In times of a low natural gas prices and reduced drilling, Lease Amendments, Modifications and Ratifications may become common. Gas companies may attempt to revive or restore a expired lease by presenting the royalty owner with a Lease Modification and Amendment.
To shut in a well means to make it not produce, so we'll start with a primer on production. When a well is producing it means the well has been drilled, completed in a reservoir, and oil and/or gas is somehow moving up the wellbore and to the surface facility.