As you all know I work as a landman. I would like you thoughts and ideas about the lastest tricks I have seen. My daughter recieved a lease, amount agreeded upon (by the way not my company).
The form La Spec. 14-br1--2a-nl rev2/99 has 17 items. This lease has 20, the following are copied and pasted from her lease and they are the changes.

provided that no one operating unit shall, in the case of gas, including condensate, embrace more than six
hundred forty (640) acres [except in the event of a horizontal oil or gas completion, in which event such unit may embrace as much as
one thousand nine hundred twenty (1920) acres], and in the case of oil, including casinghead gas, (other than a horizontal oil or gas
completion) embrace more than forty (40) acres; and provided further, however,

1920 acre unit?

14. It is expressly understood and agreed that the premises leased herein shall, for all the purposes of this lease, be
considered and treated as owned in indivision by the Lessor and shall be developed and operated as one lease, and there shall be no
obligation on the part of Lessee to offset wells on separate tracts into which the land covered by this lease may be now or hereafter divided
by sale, or otherwise, or to furnish separate measuring, or receiving tanks, and all rentals, royalties and other payments accruing hereunder
shall be treated as an entirety and shall be divided among and paid to Lessor in the proportion that the acreage (mineral rights) owned by
each bears to the entire leased acreage. Lessee may at any time or times pay or tender all sums accruing hereunder to the joint credit of
Lessor.

This is not in our lease.

17. Lessee shall pay for actual damages caused by its operations to growing crops and timber on said land leased herein.
Lessor specifically agrees that the obligations and liabilities of the Lessee and its successors and assigns for reclamation, restoration, repair
or maintenance of the surface or subsurface of the leased premises shall never exceed the fair market value (determined as of the effective
date hereof) of the lands covered by this lease, or the portion thereof, for which such reclamation, restoration, repair or maintenance is
required.

The first line is standard.


20. For the same consideration recited above, Lessor hereby grants, assigns and conveys unto Lessee, its successors
and assigns, a perpetual subsurface well bore easement under and through the leased premises for the placement of well bores (along
routes selected by Lessee) from oil or gas wells the surface locations of which are situated on other tracts of land not covered hereby
and which are not intended to develop the leased premises or lands pooled therewith and from which Lessor shall have no right to
royalty or other benefit. Such subsurface well bore easements shall run with the land and survive any termination of this lease.

This one is added on too.

Ok I need someone who can translat mummbo jummbo into English to tell me what these new additions mean.
Seems like you might need to learn how to read between the lines.

Tags: lease, terms

Views: 380

Reply to This

Replies to This Discussion

A landman mentioned well bore easments in a discussion several weeks back as a way to drill on one section yet not pay royalties on said location.I have not found a definate answer to this situation as of yet.It looks like numerous sections could be controlled and worked from one location. The 1920 acre unit sounds mighty CHPK to me. I do believe that is the company that the landman of record is employed by.
If there is a reason other then HBP , for the 1920 I would love to hear it. If there isn't depth limitation and a small verticle could hold someone , look at how much more drilling would be saved under initial terms of these leases. 1 drill hole holding 3 sections.One royalty check shared by 3 people. Doesn't sound too good for the landowners does it. This certainly goes to show the naysayers that said they can't drill it all that we aren't dealing with people that don't know what they are doing.
It seems to me that the "perpetual" well bore easement has no business being in a term lease. We asked Manna to changes this clause to read for the term of the lease, and they deleted the clause completely.

RSS

Support GoHaynesvilleShale.com

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service