Alabama Exhibit Schedule of Oil and Gas Leases Form 3

State:
Multi-State
Control #:
US-OG-526
Format:
Word; 
Rich Text
Instant download

Description

This Exhibit provides a schedule of oil and gas leases subject to the Operating Agreement.

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How to fill out Exhibit Schedule Of Oil And Gas Leases Form 3?

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FAQ

The primary term on average is 3 years. Companies can add a 2-year extension if they wish. The company that executed the lease uses this time period to achieve drilling the well. Once that is completed, the secondary term begins and lasts for as long as the well is producing.

Search online database of new and updated oil and gas leases. Use Enverus analytics to focus search on specific geographies, lease dates and contract terms, production record and leasing costs.

What is the granting clause? The granting clause is the clause under which the owner of the oil and gas rights leases the oil and gas rights to the oil and gas company along with the right to develop the oil and gas on a specifically described piece of real estate.

The memorandum of lease is a short form version of the oil and gas lease. The memorandum of lease is recorded. The full lease will not be recorded. You may also receive an addendum.

A Pugh Clause is enforced to ensure that a lessee can be prevented from declaring all lands under an oil and gas lease as being held by production. This remains true even when production only takes place on a fraction of the property.

Granting Clause: The clause in the deed that lists the grantor and the grantee and states that the property is being transferred between the parties.

A clause in an oil & gas lease that provides that if the leased land is later owned by separate parties, such as in a sale of part of the property, the lessee can continue to operate, develop, and treat the lease as a whole and pay royalties to each owner based on its percentage of ownership of the entire area.

in clause (or shutin royalty clause) traditionally allows the lessee to maintain the lease by making shutin payments on a well capable of producing oil or gas in paying quantities where the oil or gas cannot be marketed, whether due to a lack of pipeline connection or otherwise.

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Alabama Exhibit Schedule of Oil and Gas Leases Form 3