If a lease will expire, by its own terms, and the lessee desires to maintain the lease in effect by the payment of bonus, rather than commencing operations, and the terms of the original lease continue to be acceptable to the lessor, the parties may elect to amend the existing lease to extend the primary term, rather than entering into a new lease. This form addresses that situation.
New Mexico Amendment to Oil and Gas Lease to Extend Primary Term: A New Mexico Amendment to an Oil and Gas Lease to Extend the Primary Term is a legal document that allows the parties involved to extend the initial term of an existing oil and gas lease agreement in the state of New Mexico. This amendment is typically used when the lessee requires more time to explore and develop the leased premises for potential oil and gas production. Keywords: 1. New Mexico: Referring to the state where the oil and gas lease amendment is applicable. 2. Oil and gas lease: A contractual agreement between a lessor (landowner) and a lessee (oil and gas company) granting the lessee the right to explore and produce oil and gas on the lessor's property. 3. Primary term: The initial period stated in the original oil and gas lease agreement during which the lessee has the exclusive right to explore, develop, and produce oil and gas on the leased premises. 4. Amendment: A modification or addition to an existing contract or agreement. 5. Extend: To prolong or lengthen the duration of something, in this case, the primary term of the oil and gas lease agreement. 6. Lease premises: The specific area of land covered by the oil and gas lease agreement. 7. Exploration and development: The activities performed by the lessee to identify and assess the potential for oil and gas production, including drilling, testing, and evaluating potential reserves. Different Types of New Mexico Amendment to Oil and Gas Lease to Extend Primary Term: 1. Standard Extension Amendment: This type of amendment is commonly used when both the lessor and lessee agreed to extend the primary term of the oil and gas lease for a specified period. It outlines the agreed terms, conditions, and any additional considerations for the extension. 2. Mutual Consent Amendment: If the original oil and gas lease does not explicitly state provisions for extending the primary term, a mutual consent amendment may be used. This type of amendment highlights that both parties mutually agree to extend the primary term, laying out the revised terms and conditions. 3. Force Mature Amendment: In exceptional circumstances beyond the control of the lessee, such as a natural disaster or unforeseen political event, a force majeure amendment may be utilized to extend the primary term of the lease. This amendment focuses on the triggering event and outlines the necessary provisions for the extension. 4. Retention Lease Amendment: If the primary term is approaching expiration, and the lessee intends to retain the leased premises for an extended period without commencing production, a retention lease amendment can be utilized. This type of amendment allows the lessee to maintain the lease rights for an extended secondary term while providing compensation to the lessor. In conclusion, a New Mexico Amendment to Oil and Gas Lease to Extend Primary Term is a legal document that enables the parties involved to prolong the initial term of an oil and gas lease agreement in New Mexico. Different types of amendments are used depending on the specific circumstances outlined in the agreement.
