Maryland Surface Lease to Allow Storing or Transporting Oil and Gas from off Premises

State:
Multi-State
Control #:
US-OG-151
Format:
Word; 
Rich Text
Instant download

Description

This form addresses the situation where an oil operator desires to store oil (probably in a tank battery) on lands where the wells are not located and are not subject to an oil and gas lease.
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FAQ

A mineral lease is a contractual agreement between the owner of a mineral estate (known as the lessor), and another party such as an oil and gas company (the lessee). The lease gives an oil or gas company the right to explore for and develop the oil and gas deposits in the area described in the lease.

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.

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.

The BLM administers the lease but the Forest Service has more direct involvement in the leasing process for lands it administers. The Act also establishes a requirement that all public lands that are available for oil and gas leasing be offered first by competitive leasing.

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.

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Maryland Surface Lease to Allow Storing or Transporting Oil and Gas from off Premises