New Mexico Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage) The New Mexico Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage) is a legal provision designed to allow for the storage of natural gas within existing oil, gas, and mineral lease agreements in the state of New Mexico. By implementing this amendment, the government aims to maximize the potential of storage facilities and enhance the efficient and effective utilization of natural gas resources. Keywords: New Mexico, Amendment, Oil, Gas, Mineral Lease, Gas Storage, legal provision, natural gas resources, storage facilities, efficient utilization, effective utilization. Types of New Mexico Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage): 1. Voluntary Amendment: This type of amendment encourages oil, gas, and mineral leaseholders to voluntarily include provisions for gas storage within their existing lease agreements. By choosing to include this amendment, leaseholders can benefit from additional income streams and diversified operations, while contributing to the overall energy security of New Mexico. 2. Mandatory Amendment: In certain cases, the New Mexico government may enforce a mandatory amendment to oil, gas, and mineral leases for gas storage purposes. This ensures a comprehensive and strategic approach towards gas storage, which, in turn, helps the state to meet emergency and peak demand requirements, stabilize gas prices, and bolster its energy infrastructure. 3. Leaseholder Benefits Amendment: This specific type of amendment may outline the incentives and benefits available to leaseholders who opt for gas storage provisions. These benefits can include reduced lease rates, tax credits, production bonuses, or other economic advantages that encourage leaseholders to actively participate in gas storage initiatives. 4. Environmental Compliance Amendment: To prioritize environmental sustainability and safety, this type of amendment ensures that any gas storage practices adhere to strict regulations, compliance requirements, and environmental impact assessments. By incorporating such provisions within the amendment, New Mexico demonstrates its commitment to responsible energy management and mitigating any potential environmental risks associated with gas storage. 5. Reservoir Management Amendment: This amendment focuses on the efficient and sustainable management of gas reservoirs used for storage purposes. It may include guidelines on well spacing, pressure monitoring, injection and withdrawal rates, and overall reservoir simulation practices. By adopting this type of amendment, New Mexico aims to optimize reservoir utilization, extend their lifespan, and maintain gas storage capacity. Overall, the New Mexico Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage) plays a crucial role in facilitating the storage of natural gas within existing leases. By offering various types of amendments tailored to different leaseholder preferences and objectives, New Mexico aims to leverage its natural gas resources effectively, promote environmental responsibility, and ensure energy security for the state and its residents.
New Mexico Amendment to Oil, Gas and Mineral Lease (to Provide for Gas Storage)
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The New Mexico Oil and Gas Justice and Reform Act Reforms the Basic Framework of the 1935 Oil and Gas Act to: Expand the duties and authorities of the Oil Conservation Commission (OCC) and Oil Conservation Division (OCD) to include: Protection of the environment, Protection of public health, and.
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.
The oil and gas proceeds derived from the sale of production from any well producing oil, gas or related hydrocarbons in New Mexico shall be paid to all persons legally entitled to such payments, commencing not later than six months after the first day of the month following the date of first sale and thereafter not ...
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.
By way of background, a ?free use? clause is a provision in an oil/gas lease which gives the lessee the right to use gas produced from the leasehold.
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.
Royalty Payment Clauses A royalty is agreed upon as a percentage of the lease, minus what was reasonably used in the lessee's production costs. This is stipulated in a Royalty Clause. The royalty is paid by the lessee to the owner of the mineral rights, the lessor in the lease.
A clause in an oil & gas lease that keeps the lease in effect after a dry hole is drilled. The lessee must start drilling a new well within a specified time.