Montana Affidavit As to Acreage Assigned to Spacing / Proration Units Around Producing Wells by Lessee
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How to fill out Affidavit As To Acreage Assigned To Spacing / Proration Units Around Producing Wells By Lessee?
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FAQ
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.
Retained Acreage ? A clause that provides that a lease will continue after the expiration of the primary term as to a certain number of acres associated with each of the wells drilled under the lease.
An example of a Surface Area Pugh Clause: ?Production from or operations on a pooled unit or units including a portion or portions of the leased premises will maintain this Lease in force only as to the acreage included in the unit or units.
Held-by-production clauses allow miners for oil, gas and minerals extend their land leases after they expire as long as the mines are still productive. Mining companies seek held-by-production clauses to lock in a lease price in potentially ?hot? areas of production.
1. n. [Oil and Gas Business] The amount of acreage, determined by governmental authority that can be efficiently and economically drained by a well at a particular depth or horizon. See: communitization, pooling, unitization.
The Pugh Clause has no ?standard language? and there are as many forms as there are drafters to the form. The clause will only have the effects that are specifically provided for in the language itself.