Common Oil, Gas & Mineral Riders in Texas
(Part 2 of 4)
With suggested strikeouts.
Exclusion of Other Minerals
It is understood and agreed that iron ore, coal, lignite, uranium, and gravel are excepted and not included in this lease.
Notwithstanding anything herein above to the contrary and there is excepted here from and reserved to the Lessor herein all iron ore, coal, lignite, uranium, fissionable materials, bentonite fullers’ earth, and other clay-like substances. It is specifically understood and agreed that this lease covers only oil, gas, sulphur, and associated liquid or liquefiable hydrocarbons, but this lease does not cover or include any other minerals, with all other such minerals being reserved unto the Lessor herein. Accordingly, the words “oil, gas," when used herein shall mean oil, gas sulphur, and associated liquid or liquefiable hydrocarbons and the words “all other minerals" whenever used herein shall be stricken from this lease so that such “all other minerals" are reserved unto the Lessor.
There is excepted from this lease and reserved to Lessor, their successors and assigns all vanadium, uranium, plutonium, thorium, fissionable minerals and materials and all other minerals except as hereinafter provided; and it is understood and expressly provided that the terms “mineral," “minerals," “other mineral" and “other minerals" whenever and wherever used in this lease shall not refer to and shall not include vanadium, uranium, plutonium, thorium, fissionable minerals and materials or any other minerals or materials other than oil, gas and sulphur.
Notwithstanding any wording in this lease to the contrary, it is hereby agreed between Lessor and Lessee that this lease covers only oil, gas and all other hydrocarbons and/or substances, whether elements, mixtures or compounds in liquid, gaseous or vaporous forms or states, which can or may be produced through the bore of a well producing oil or gas.
No Drill Clause (Non-Development)
By the acceptance hereof, Lessee agrees that no drilling, prospecting or mining operations will be conducted, nor any pipelines or any structures or any type facilities will be constructed upon the surface of the herein leased premises without the written consent of the Lessor herein; but Lessee shall have the right to prospect, drill, mine and produce said minerals from said land by operations which it may conduct on adjoining or nearby lands through the drilling, operating and maintaining of directional wells or horizontal wells on such adjoining or nearby lands, or by operations which it may conduct upon lands with which the herein leased premises or any part thereof may be pooled.
It is expressly agree and understood that the herein described lands are granted in this lease for the purpose of pooling only. The right to enter on said lands for any purpose is prohibited.
Without Lessors’ written consent, Lessee is prohibited from drilling on the above property, and Lessee shall have no right of ingress or access thereto for any purpose whatever.
Lessee agrees that it will conduct no operations on the surface of said land. It is further agreed and understood that Lessee shall have the right to drill and operate directional wells through and under said land, irrespective of the bottom hole locations of said wells. To this end, Lessor hereby grants to Lessee a subsurface easement for all purposes associated with such directional wells. Lessee agrees that subsurface easement shall commence at and continue below the depth of 300 feet.
It is agreed herein that no operations shall be conducted upon the surface of the leased premises without prior written consent of Lessor. However, this lease can be maintained by directional drilling, unitization or by any other means herein provided.
… Lessee shall not …. on Lessor’s land without written consent of Lessor.
… Lessee shall not …. on Lessor’s land without written consent of Lessor, but said consent will not be unreasonably withheld.
Pooling Limitation by Depth
It is expressly agreed and provided that units pooled for gas, distillate, and/or condensate shall not exceed 320 acres plus a tolerance of ten percent (10%) for a depth of 9,500 feet or less below the surface of the earth, and shall not include more than 640 acres plus a tolerance of ten percent (10%) for any depth more than 9,500 feet below the surface of the earth.
Pugh Clause (AKA Freestone Rider)
In the event a portion of the land herein leased is pooled or unitized with other land so as to form a pooled unit or units, operations on or production from such unit or units will maintain this lease in force only as to the land included in such unit or units. This lease as to the land not included in such unit or units, may be maintained in force and effect during the primary term hereof by the payment of a proportionate part of the rentals provided herein as to the acreage not included in such unit or units, or by the drilling or reworking operations on such acreage or production therefrom, in accordance with the terms and provisions of this lease.
Not withstanding anything herein to the contrary, it is agreed that should Lessee exercise his option to pool or combine any portion of the land covered hereby with other lands, lease or leases as herein before provided, then such operations and production on and in any such pooled unit as herein provided, shall continue this lease in force and effect during or after the primary term as to that portion of the lands covered by this lease, included in such unit or units as herein above provided, but not as to such portion of said lands covered by this lease and not included in any such unit. This lease may be kept in force and effect as to such remainder in any manner elsewhere provided in this lease not inconsistent with this paragraph.
No Partial Pooling or Unitization/“All or Nothing"
Notwithstanding anything contained herein to the contrary, it is expressly agreed and understood that in the event that Lessee elects to pool or unitize and unitizes any of the leased premises, then all of leased premises will be included in such pool or unit.
If, under the provisions of paragraph _____ of this Oil, Gas and Mineral Lease, Lessee pools acreage for gas or oil, it is agreed by all parties hereto that the total mineral acreage described above will be included in such unit.