Wake North Carolina Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells

• Category: Oil Gas and Minerals - Amendments
• State: Multi-State
• County: Wake
• 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 Wake North Carolina Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a vital document that addresses the specific requirements and regulations related to shutting-in oil wells in Wake County, North Carolina. This amendment serves as a legal instrument to modify the terms and conditions of an existing oil and gas lease agreement by incorporating a shut-in provision. The shut-in provision is a crucial component of the lease agreement as it allows operators or leaseholders to temporarily suspend oil production activities without violating the terms of the lease. Typically, this provision is invoked when certain circumstances arise, such as market conditions, equipment repairs, or lack of demand, making it unprofitable or unfeasible to continue production. In Wake County, North Carolina, there may be various types of amendments to the oil and gas lease to add a shut-in provision for oil wells, including but not limited to the following: 1. Temporary Shut-In Provision: This type of amendment allows the operator/leaseholder to temporarily suspend production for a specific period, which is mutually agreed upon by the parties involved. It may outline the length of the shut-in period, conditions for reinstating production, and any associated costs or penalties. 2. Permanent Shut-In Provision: This amendment permanently terminates production activities in specific oil wells. It may arise when the well becomes uneconomical to operate, depleted in resources, or poses environmental risks that outweigh the benefits of continued production. This provision typically involves provisions for well abandonment and site restoration. 3. Shut-In Royalty Provision: This type of amendment addresses the royalty payments to the lessor during the shut-in period. It may specify the reduced royalty rate or the exemption from royalty payments while the well remains inactive. The shut-in royalty provisions are crucial for establishing a fair compensation structure during periods of suspended production. It is important to consult legal professionals or experts specializing in oil and gas lease agreements in Wake County, North Carolina, to draft or assess the Wake North Carolina Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells effectively. This ensures the specific needs and requirements of both the lessor and the operator/leaseholder are adequately reflected and legally binding within the amendment.

The Wake North Carolina Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a vital document that addresses the specific requirements and regulations related to shutting-in oil wells in Wake County, North Carolina. This amendment serves as a legal instrument to modify the terms and conditions of an existing oil and gas lease agreement by incorporating a shut-in provision. The shut-in provision is a crucial component of the lease agreement as it allows operators or leaseholders to temporarily suspend oil production activities without violating the terms of the lease. Typically, this provision is invoked when certain circumstances arise, such as market conditions, equipment repairs, or lack of demand, making it unprofitable or unfeasible to continue production. In Wake County, North Carolina, there may be various types of amendments to the oil and gas lease to add a shut-in provision for oil wells, including but not limited to the following: 1. Temporary Shut-In Provision: This type of amendment allows the operator/leaseholder to temporarily suspend production for a specific period, which is mutually agreed upon by the parties involved. It may outline the length of the shut-in period, conditions for reinstating production, and any associated costs or penalties. 2. Permanent Shut-In Provision: This amendment permanently terminates production activities in specific oil wells. It may arise when the well becomes uneconomical to operate, depleted in resources, or poses environmental risks that outweigh the benefits of continued production. This provision typically involves provisions for well abandonment and site restoration. 3. Shut-In Royalty Provision: This type of amendment addresses the royalty payments to the lessor during the shut-in period. It may specify the reduced royalty rate or the exemption from royalty payments while the well remains inactive. The shut-in royalty provisions are crucial for establishing a fair compensation structure during periods of suspended production. It is important to consult legal professionals or experts specializing in oil and gas lease agreements in Wake County, North Carolina, to draft or assess the Wake North Carolina Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells effectively. This ensures the specific needs and requirements of both the lessor and the operator/leaseholder are adequately reflected and legally binding within the amendment.