An operator and working interest owner (“Operator”) operates a marginally producing oil well on land subject to an oil and gas lease (the “Lease”) that is well beyond its primary … Continue reading “SHUTTING-IN AN OIL WELL”
Category: Lease Provisions
HAVE YOU BEEN ASKED TO SIGN AN EXTENSION, RENEWAL, OR REVIVOR OF AN OIL AND GAS LEASE?
Generally this request will be made when one of the following situations have occurred: 1. There is no production on a lease previously signed and it has or will soon … Continue reading “HAVE YOU BEEN ASKED TO SIGN AN EXTENSION, RENEWAL, OR REVIVOR OF AN OIL AND GAS LEASE?”
THE AMOUNT OF ROYALTY PROVIDED FOR IN A LEASE
The earliest dated oil and gas leases all provided for a one-eighth (1/8) royalty. It is unknown how that fraction was determined, or negotiated between the lessor and the lessee. … Continue reading “THE AMOUNT OF ROYALTY PROVIDED FOR IN A LEASE”
SURFACE USE DAMAGES
As the dominant estate, the owner or lessee of the mineral estate, in Texas, has the right to make use of as much of the surface as is reasonably necessary … Continue reading “SURFACE USE DAMAGES”
SUBORDINATIONS
A Subordination is commonly encountered in a situation where a lessee has acquired an oil and gas lease from a lessor/landowner, when the lands are subject to a mortgage or … Continue reading “SUBORDINATIONS”
FORMS OF OIL AND GAS LEASES
There is no “standard” form of oil and gas lease. Many believe a “Producer 88” is a standard form lease. This is not true. The story (or legend) concerning the … Continue reading “FORMS OF OIL AND GAS LEASES”
FAVORED NATIONS PROVISION
It is not uncommon that a mineral owner is approached by a landman or oil company, requesting the landowner to execute an oil and gas lease, as lessor. The lessor … Continue reading “FAVORED NATIONS PROVISION”
Pooling
What is Pooling? Pooling is the combining or bringing together of two or more small or irregularly shaped tracts of land to form one drill site or pooled unit. … Continue reading “Pooling”
