Connecticut Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells is a legal document that enables parties involved in an existing oil and gas lease in the state of Connecticut to incorporate a shut-in provision. This provision allows the lessor or lessee to temporarily cease production from an oil well while still maintaining the validity of the lease. By adding this provision, both parties can protect their interests during periods of low market prices, equipment maintenance, or unforeseen circumstances. The Connecticut Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells serve as an extension or modification to the original lease agreement. It allows the lessee to halt operations temporarily without breaching the terms of the initial lease. This provision can help lessees manage production costs during times of low market prices, ensuring economic viability for all parties involved. Keywords: Connecticut, Amendment, Oil and Gas Lease, Shut-In Provision, Oil Wells, legal document, existing lease, temporary cessation, validity, safeguarding interests, low market prices, equipment maintenance, unforeseen circumstances, extension, modification, halt operations, breaching terms, production costs, economic viability. Types of Connecticut Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells: 1. Primary Shut-In Provision Amendment: This type of amendment is used to allow the lessee to temporarily cease production from an oil well due to low market prices or other economic factors. It ensures that the lease remains valid during the shutdown period. 2. Equipment Maintenance Shut-In Provision Amendment: This type of amendment allows the lessee to shut-in production temporarily for maintenance and repairs of equipment used in the oil well. It ensures that the lessee can address any necessary maintenance without violating the terms of the original lease. 3. Force Mature Shut-In Provision Amendment: This type of amendment includes a provision that permits the lessee to suspend production temporarily in the event of unforeseen circumstances such as acts of nature, war, or government regulations. It provides protection for both parties in situations beyond their control. 4. Temporary Production Halt Shut-In Provision Amendment: This type of amendment enables the lessee to halt oil well production temporarily for a specific period without incurring any penalty or breaching the lease agreement. This provision can be used during times of excessive supply, market instability, or other factors affecting profitability. Please note that the actual names of the specific Connecticut Amendments to Oil and Gas Lease to Add Shut-In Provision For Oil Wells may vary depending on the lease agreement and the preferences of the parties involved.
Connecticut Amendment to Oil and Gas Lease to Add Shut-In Provision For Oil Wells
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A savings clause in an oil & gas lease that keeps the lease in effect after a once-productive well stops producing oil or gas if certain conditions are met. The lessee must either begin reworking the well to restore production or start drilling a new well within a specified time.
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.
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.
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.
Definition. Generally, a continuous drilling provision allows a temporary cessation of production without automatically resulting in the termination of an oil and gas lease that has been extended by production.
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.
By way of background, a ?free use? clause is a provision in an oil/gas lease which gives the lessee the right to use gas produced from the leasehold.