NEW DEPTH PUGH
:  In the event this lease is continued in force beyond the primary term by actual production or drilling or reworking operations conducted on the lands covered by this lease or other lands pooled therewith or as otherwise provided herein, this lease shall nevertheless terminate at the conclusion of the primary term as to the following lands and depths, to wit-: the surface area and all depths below all lands not then included within a validly formed pool or unit for the production of oil or gas which is producing or on which such operations are being conducted and all depths located one hundred (100) feet below the stratigraphic equivalent of the base of the deepest zone then being produced in paying quantities at the conclusion of the primary term.

OLD DEPTH PUGH:  At the termination of the primary term of this Lease, this Lease shall expire as to all depths below the base of the deepest formation then producing from said land or lands permissively pooled herewith. Upon written request by Lessor, at the termination of this Lease, as to any part of said land or depths covered hereby that have terminated, Lessee, its successors or assigns, at Lessee’s sole expense, shall prepare and publicly record a partial release, and shall provide one (1) copy of such partial release to Lessor. 

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Replies to This Discussion

Melissa,

I saw your post and see one major problem with the new clause. It gives the Lessor  a 100 ft. buffer zone below the deepest depth drilled and produced. That 100 ft could put them in another producible strata. That is the case in the Austin Chalk/Eagle Ford and in the TMS/Tuscaloosa plays. There is very little distance, if any, between those strata and that could be a problem.


the 100ft is pretty standard.

Yes, Baron. But the problem is there isn't 100 ft between some of these formations and if you include the 100 ft. in the lease you are locking yourself out of leasing the deeper formation because it is held under the 100 ft buffer. Some of these "standard" clauses need to change with the times and circumstances.

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