Common Oil, Gas & Mineral Lease Riders in Texas (Part 1 of 4)
Common Oil, Gas & Mineral Riders in Texas
(Part 1 of 4)
With suggested strikeouts.
Actual Surface Damages/Surface Restoration
Should Lessor suffer damage to livestock, water wells, fences, roads, personal property, buildings or other improvements as a result of operations of Lessee under this lease, Lessee agrees to pay Lessor the actual amount of the said loss. Lessee further agrees to fill and level all slush pits, so as to return the surface to its original condition as nearly as practical, within as reasonable length of time after the abandonment of the use of such pits, and, upon written request from the Lessor, Lessee will construct and maintain fences surrounding such pit or other excavations sufficient to turn cattle until such pits or other excavations are so leveled.
If a well is drilled on the leased premises and the surface of the land has been disturbed or damaged by Lessee, or if any operations are conducted by Lessee on leased premises, within ninety (90) days of such drilling and the completion of any such well, either as a producer or as a dry hole, or within ninety (90) days of the cessation of any such operations or the termination of this lease, whichever is later in time, weather conditions permitting, Lessee shall level and restore as near as reasonable possible the previous level, or contour, of the surface of the land, refilling all holes and slush pits, as nearly as is practicable. Lessee shall reimburse Lessor, or the surface owner, or any tenant of surface owner, as their respective interest may appear for any and all damage to the fences, gates, roads, water wells, irrigation canals, bridges, buildings, or any other improvements, trees, growing crops, grass, livestock or cattle, on said land which were caused by or which result from Lessee’s operations on the leased premises.
At the end of each drilling operation, the Lessee shall proceed with reasonable diligence to restore the surface of the leased premises to as near its original condition as practicable, and shall pay Lessor in full for all damages to crops, livestock, land or improvements situated on the leased premises caused by Lessee’s operations.
Lessee shall be responsible for all surface damages to the land, buildings, crops, irrigation wells and all other improvements thereon, caused by its operations thereon, and Lessee shall restore the surface of the land, as near as practicable, to its original conditions following cessation of operations thereon, if any.
Notwithstanding anything to the contrary contained herein, in the event a gas well is completed capable of producing gas but which is not being produced, this lease may not be maintained in effect for a period exceeding two years beyond the primary term hereof under the shut-in gas provisions included above.
Notwithstanding any other provisions in this lease, it is expressly understood and agreed that, after the primary term, this lease cannot be maintained in force solely by the payment of shut-in gas well royalty for any one period in excess of _____ years.
Notwithstanding any provisions hereof to the contrary, it is expressly agreed and understood that Lessee’s rights to maintain this lease in force after the expiration of the primary term hereof by payment of shut-in gas royalty under Paragraph _____ shall be limited to recurring periods after the primary term not to exceed Twelve (12) months in the aggregate.
This lease shall not be maintained by the payment of shut-in royalties as provided for in Paragraph No. _____ hereof for any period of more than two (2) consecutive years following the shutting in of a well, but this right to maintain this lease for such period of time shall be a recurring right and may be exercised at any time and from time to time whenever Lessee finds it necessary or expedient to shut-in such well or wells.
Change of Pre-Printed Royalty
Notwithstanding anything in this lease to the contrary, royalty on oil and gas shall be one-fifth (1/5) of oil and gas produced and saved under the terms of this lease, and wherever in Paragraph 3 of this lease the fraction one-eighth (1/8) appears, same shall be deemed to read one-fifth (1/5).
It is agreed and understood by Lessor and Lessee that all royalty payments referred to in this agreement as one-eight (1/8) shall be construed to be and are hereby changed to be one-fifth (1/5). This shall include oil, gas, sulphur, and associated liquid or liquefiable hydrocarbons.
It is understood and agreed that this lease covers and includes only those formations lying deeper than the depth of 7,000 feet below the surface of the earth, all formations lying above 7,000 feet below the surface of the earth being excluded from this lease and reserved to Lessor. However, Lessee shall have the right to use the surface of said land for all purposes of this lease, and shall have all easements from the surface of the earth of the earth to the depth of 7,000 feet in order to conduct operations hereunder.
Notwithstanding anything contained herein to the contrary, it is agreed and understood that this lease does not cover the horizons between the surface of the earth and the base of the formation, which zones are specifically excluded from the terms of this lease; provided however, lessee is hereby specifically granted the right to use the surface and to drill through such horizons in its search for production from depths below the reserved zones with the further right to produce oil, gas and other hydrocarbons from such deeper horizons through such reserved horizons.
Vertical Pugh/Vertical Severance/Deep Rights
Notwithstanding anything contained in Paragraph _____ or any other paragraph hereof to the contrary, it is understood and agreed that upon the expiration of the primary term, if this lease should be continued by reason of production, then in that event, all rights, covenants and conditions of this lease shall terminate as to all strata, horizons, and land situated one hundred (100’) feet below the deepest depth drilled (or deepest depth at which is producing/capable of producing at the end of the primary term) of a well situated on the lease premises or on acreage pooled therewith.
It is expressly agreed and provided that any well or wells drilled on the leased premises described herein will earn from the surface of the earth to _____ feet below the deepest well drilled on the land herein described, during the primary term of this lease. It is further agreed and understood that any well or wells drilled on the land described herein may be deepened to deeper horizons, and the said well or wells that are deepened will earn from the surface to _____ feet below the deepest horizon drilled. No well on the land described herein can be deepened past the primary term of this lease.
It is agreed and understood that, upon the expiration of the primary term of this Lease, or upon the expiration of the period by which the primary term has been extended by drilling operations, then this lease shall expire as to all rights below 100 feet below the stratigraphic equivalent of the deepest well drilled in any well drilled on the Leased Premises or on a unit with which all or a part of the Leased Premises may be pooled or unitized. Lessee agrees that it will, within sixty (60) days after the expiration of the primary term or said drilling operations, execute and file of record the appropriate act of partial release which will fully release the Lessee's rights in the lease as to all zones, depths and horizons lying below 100 feet below the stratigraphic equivalent of the deepest well drilled , on any well drilled on the Leased Premises or on a unit with which all or apart of the Leased Premises may be pooled or unitized.
Mother Hubbard Limitation
Notwithstanding anything herein to the contrary, the provision in paragraph _____ beginning “this lease also covers and includes all land owned or claimed …" and ending with “boundaries of the land particularly described above" intends solely to cover fencing and other boundary discrepancies, and is by this paragraph limited to a maximum of three percent (3%) of the _____ gross acres described.