rubber band clause
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Permalink Reply by Carolyn Flournoy on
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Rubberband clause is based on production units whether pooled or not.
If your acreage is small then you would want it all put in. If acreage is larger,
then you would want to be able to release any amount of minerals not put in
the pool or unit.Horizontal severance clause can limit the depth that can be
drilled without them paying additional money. You really need these two
clauses.
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