Puerto Rico Waiver of Lease Provision by Lessor Who Owns Surface, Prohibiting Drilling within Specified Distance of Structure

State:
Multi-State
Control #:
US-OG-155
Format:
Word; 
Rich Text
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Description

This form serves to amend an oil and gas lease to allow a lessee to drill at any location on lands subject to a lease, including a location in close proximity to a building or structure on the lands subject to a lease.

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FAQ

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.

A lessee is a person who rents land or property from a lessor. The lessee is also known as the ?tenant? and must uphold specific obligations as defined in the lease agreement and by law.

The surface use agreement will specify what the oil and gas company or operator can do on the landowner's land in developing the oil and gas, where development can take place, and what compensation the landowner will receive.

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.

Surface Use Agreements are voluntary agreements that govern the working relationship between a mineral owner or lessee and a surface owner regarding the company's surface activities and the disturbed portion of the land during access roads and well sites construction on the land in question.

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Puerto Rico Waiver of Lease Provision by Lessor Who Owns Surface, Prohibiting Drilling within Specified Distance of Structure