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.
Oregon Amendment to Oil and Gas Lease to Extend Primary Term: An Oregon Amendment to Oil and Gas Lease to Extend Primary Term is a legal document used to extend the length or duration of an existing oil and gas lease in the state of Oregon. This amendment is essential for both the lessor (landowner) and the lessee (oil and gas company) to mutually agree upon and redefine the terms and conditions for continuing the lease beyond its initial primary term. The primary term in an oil and gas lease refers to the initial period during which the lessee has the right to explore and develop the leased property for oil and gas extraction. Typically, the primary term is a fixed number of years, and at the end of this term, the lease will expire unless certain conditions are met, such as the amendment to extend the primary term. Keywords: Oregon, amendment, oil and gas lease, extend, primary term, legal document, lessor, lessee, terms and conditions, lease expiration, oil and gas extraction. Types of Oregon Amendments to Oil and Gas Lease to Extend Primary Term: 1. Extension Amendment: This type of amendment involves extending the primary term by a specific number of years as agreed upon by both parties. It outlines the revised term and any other modifications to the lease agreement. 2. Renewal Amendment: A renewal amendment is used when the parties wish to renew the lease for another term after the primary term has expired. It may involve negotiating new terms, including rental payments, royalties, and surface use considerations. 3. Partial Extension Amendment: In some cases, the lessor and lessee may agree to extend the primary term for only a portion of the leased premises while allowing the remaining area to revert to the lessor. This amendment specifies the revised terms and the boundaries of the extended area. 4. Force Mature Amendment: This amendment is used when circumstances beyond the control of either party, such as natural disasters or regulatory restrictions, prevent the lessee from fully utilizing the primary term. It allows for an extension of the lease to compensate for the period of non-production. 5. Amended and Restated Lease Agreement: Sometimes, instead of a separate amendment to extend the primary term, the parties opt to draft an entirely new lease agreement incorporating the extensions and modifications. This may be done to simplify the document and ensure that all the terms are up to date and accurately reflect the current intentions of both parties. By utilizing the appropriate type of Oregon Amendment to Oil and Gas Lease to Extend Primary Term, both the lessor and lessee can effectively extend the lease and continue their business relationship while complying with relevant regulations and protecting their respective interests.
