Florida Conveyance of Right to Make Free Use of Gas Provided For in An Oil and Gas Lease

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Multi-State
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US-OG-100
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Description

If a lessor has retained the right to use gas, this form provides for the transfer of this right to the surface owner of the lands covered by the oil and gas lease granted by the lessor.

Florida Conveyance of Right to Make Free Use of Gas Provided For in An Oil and Gas Lease: In Florida, the conveyance of the right to make free use of gas provided for in an oil and gas lease pertains to the granting of specific rights and privileges associated with the utilization of gas resources obtained through an oil and gas lease agreement. It encompasses various aspects related to the exploration, production, and utilization of gas resources within the state of Florida. Here is a detailed description of this topic: 1. Purpose: The conveyance of the right to make free use of gas provided for in an oil and gas lease aims to define the terms and conditions under which the lessee (the party granted the oil and gas lease) can utilize the gas resources obtained from the leased property. It establishes the rights of the lessee to extract, process, and utilize gas for diverse purposes. 2. Legal Framework: The conveyance is subject to the laws and regulations governing oil and gas extraction in Florida. These laws include the Florida Oil and Gas Conservation Act, rules set by the Florida Department of Environmental Protection, and any relevant local ordinances or zoning regulations. 3. Rights Granted: The conveyance grants the lessee the right to freely use the gas resources obtained from the leased property. This includes the right to explore for gas, extract gas, and enjoy the benefits and profits derived from its utilization. However, the specific rights conveyed may vary based on the terms negotiated within the oil and gas lease agreement. 4. Types of Conveyances: There are different types of Florida conveyances for the right to make free use of gas provided for in an oil and gas lease. These variations may depend on factors such as the ownership of the property, the specific rights granted, and the parties involved. Some common types may include: a. Absolute Conveyance: This type of conveyance grants the lessee an absolute and unencumbered right to freely use the gas resources. The lessee can extract, utilize, and sell the gas without any restrictions imposed by the lessor. b. Limited Conveyance: In certain cases, the conveyance may impose restrictions on the lessee's rights to use the gas. This may include limitations on extraction volumes, usage purposes, or geographic boundaries. c. Non-Exclusive Conveyance: This type of conveyance permits multiple parties, beyond the primary lessee, to also access and make free use of the gas resources on the property. Non-exclusive rights are typically granted for collaborative operations or when multiple leases overlap. 5. Considerations: When drafting or interpreting a Florida conveyance of right to make free use of gas provided for in an oil and gas lease, several factors should be considered. These include the terms and conditions stated in the lease agreement, any reservations or exceptions made by the lessor, and compliance with regulatory requirements. In conclusion, the conveyance of the right to make free use of gas provided for in an oil and gas lease in Florida encompasses various aspects related to the utilization of gas resources. It defines the rights of the lessee to explore, extract, and use gas, while considering the applicable laws and regulations. Different types of conveyances exist based on the specific rights granted and the parties involved in the lease agreement.

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FAQ

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.

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.

An ?unless? clause provides that the lease terminates unless the lessee has either made the required payments or commenced drilling operations. Lessees can therefore be terminated from the lease by failure to pay the proper amount, by the due date, in the proper form, to the proper party.

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.

Granting Clause: This clause specifies: (a) the land that is being leased; (b) which minerals are being leased (oil, gas, uranium, etc.); and (c) and what rights the production company has to use the surface land in an effort to produce the leased minerals.

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.

A ?special warranty? is a covenant made by the lessor to defend the lessee against encumbrances or clouds on the oil and gas title created by the lessor during his ownership of the estate. The protection offered by this warranty is therefore limited to those title defects caused or created by the lessor himself.

An assignment of oil and gas lease is a contractual agreement between a landowner and an oil or gas company in which the company gains the right to explore for, develop, and produce oil and gas from the property.

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Florida Conveyance of Right to Make Free Use of Gas Provided For in An Oil and Gas Lease