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.
Michigan Continuous Development is a regulation that governs oil and gas exploration and production activities in the state of Michigan. It refers to the continuous drilling and development of a reservoir or a specific area for the purpose of maximizing resource recovery and reducing waste. This regulation ensures that operators in Michigan adopt efficient and responsible drilling practices. One type of Michigan Continuous Development is the "Pooling Continuous Development." In this type, multiple oil and gas leaseholders within a specific area are encouraged to pool their acreage together under a single development plan. This allows for the coordinated and efficient extraction of resources, eliminating the duplication of drilling operations and minimizing surface disruption. Another type is the "Unitized Continuous Development." This involves unitizing multiple leasehold interests within a reservoir or a field and treating it as a single integrated unit. This approach promotes the collective development of the reservoir, enabling coordinated production plans, enhanced resource recovery, and efficient utilization of infrastructure. On the other hand, Retained Acreage is the portion of an oil and gas lease that an operator can maintain beyond the primary term of the lease. It refers to the area or acreage that an operator is entitled to retain for future development or exploration activities. Retained Acreage can vary depending on lease terms, production activities, and regulatory requirements. There are a few types of Retained Acreage in Michigan. One is called "Shallow Acreage Retention." It allows operators to retain a specific portion of acreage when only shallow resources have been explored and developed. This provision provides flexibility for future exploration and production of deeper formations. Another type is "Deep Acreage Retention," which permits operators to retain acreage specifically for the development or exploration of deeper formations. This provision is crucial in areas where deeper resources have the potential for future commercial viability. Depth Limitations, as the name suggests, refer to the imposed restrictions on drilling depth within a specific area. These limitations ensure the safe and responsible extraction of oil and gas resources while protecting underlying geological formations, water resources, and the environment. Michigan imposes varying Depth Limitations based on geological considerations and regulatory requirements for different areas. For example, some regions may have shallow drilling depths due to the presence of sensitive formations, while others allow drilling to deeper depths where rock formations and geology permit. In summary, Michigan Continuous Development is a regulation that emphasizes efficient and responsible oil and gas drilling practices, with Pooling Continuous Development and Unitized Continuous Development being two types of this approach. Retained Acreage refers to the acreage operators can keep for future development, with Shallow Acreage Retention and Deep Acreage Retention being specific types. Depth Limitations impose restrictions on drilling depths to ensure environmental protection and safety, varying across different regions based on geological factors and regulatory requirements.
