This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the standard lease form.
Tennessee Continuous Development: Tennessee Continuous Development refers to a legal concept in the state of Tennessee that allows oil and gas operators to expand their operations and continue drilling activities in a specific area after the initial well has been drilled. This concept encourages the efficient exploration and extraction of hydrocarbon resources. Under Tennessee law, continuous development requires oil and gas operators to demonstrate a commitment to diligently develop the resource and prevent unnecessary waste. This is achieved by submitting a comprehensive development plan to the Tennessee Department of Environment and Conservation (DEC) for approval. Different types of Tennessee Continuous Development include Primary Term Continuous Development and Secondary Term Continuous Development. Primary Term Continuous Development refers to the continuous drilling and exploration of new wells during the initial term of the oil and gas lease. Secondary Term Continuous Development, on the other hand, comes into play if the lease is extended beyond the primary term. It allows operators to maintain their lease rights and continue drilling activities without interruption. Retained Acreage: Retained Acreage is a concept that pertains to the preservation of a specific area within an oil and gas leasehold that an operator can retain even if the lease expires or terminates. In Tennessee, Retained Acreage allows operators to secure a certain portion of the leased area for future drilling or exploration activities. Tennessee's law sets forth certain requirements for Retained Acreage. Once the lease terminates or expires, operators must establish that there is a production history on at least a portion of the leased area. Additionally, operators must diligently pursue their drilling activities and show reasonable efforts to explore and develop the remaining acreage. Depth Limitations: Depth Limitations refer to the specific depth or range within the subsurface that an oil and gas leaseholder can explore or extract resources from. In Tennessee, depth limitations are typically defined in the lease agreement between the operator and the landowner. These depth limitations can vary depending on various factors, including geological formations, reservoir characteristics, and regulatory requirements. Operators must adhere to these depth limitations to ensure compliance with the lease terms and regulatory guidelines. Overall, Tennessee Continuous Development, Retained Acreage, and Depth Limitations are vital components of the oil and gas industry in the state, ensuring responsible resource development, maximizing efficiency, and protecting the rights of both the operators and landowners involved.
