This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.
Arkansas Continuous Development is a policy that governs the exploration and development of oil and gas resources in the state of Arkansas. It outlines regulations and guidelines to ensure efficient and responsible extraction of these natural resources. One key aspect of Arkansas Continuous Development is the concept of Retained Acreage. In the context of oil and gas exploration, retained acreage refers to the portion of a leasehold that an operator can retain for further development, regardless of the lease term. This means that even if a lease expires, the operator can still retain a specific acreage for conducting additional drilling operations. Retained acreage provisions vary depending on the specific lease agreement, reservoir characteristics, and regulatory requirements. Different forms of retained acreage include "Pugh clauses" and "held-by-production" provisions. Pugh clauses are commonly used to define the acreage that will be released and the acreage that will be retained at the end of a primary lease term, while held-by-production provisions allow an operator to retain acreage as long as production remains economical within a certain timeframe. In addition to retained acreage, Arkansas Continuous Development also includes Depth Limitations. Depth limitations refer to the restrictions on drilling activities based on the depth range specified in the lease agreement or regulatory guidelines. These limitations are important in order to ensure the orderly development of oil and gas resources, prevent unnecessary drilling, and protect the environment. Different types of Arkansas Continuous Development, Retained Acreage, and Depth Limitations can exist based on specific lease agreements, regulatory frameworks, and governing bodies. For instance, the Arkansas Oil and Gas Commission may have specific regulations for retained acreage and depth limitations in different regions or fields within the state. Operators and leaseholders are required to adhere to these regulations to maintain compliance and ensure sustainable development of oil and gas resources in Arkansas.
