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.
Vermont Use of Produced Oil Or Gas by Lessor
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Multi-State
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US-OG-839
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How to fill out Use Of Produced Oil Or Gas By Lessor?
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FAQ
Is fracking legal in the United States? Yes, there is no federal ban on fracking and the practice is allowed by most local authorities.
"Held by production" is a provision in an oil or natural gas property lease that allows the lessee, generally an energy company, to continue drilling activities on the property as long as it is economically producing a minimum amount of oil or gas.
§ 571. (a) No person may engage in hydraulic fracturing in the State. (b) No person within the State may collect, store, or treat wastewater from hydraulic fracturing.
Held by production is an oil & gas industry term indicating a property is under lease and that the lease is being perpetuated in the secondary term by the production of oil or gas in paying quantities. An oil & gas may be in HBP status for many years if the wells located on the leased land keep producing.
Vermont has no crude oil reserves or production, nor does it have any petroleum refineries.
Response: The State of Vermont has enacted laws and rules prohibiting hydraulic fracturing for oil and gas in Vermont. Class II Waste injection wells for the injection of liquid wastes generated through hydraulic fracturing of oil and gas bearing formations are also prohibited in the State of Vermont.
Fracking happens across much of the U.S., in states such as North Dakota, Arkansas, Texas, California, Colorado, New Mexico and Pennsylvania. One state, Vermont, recently banned the practice, though it doesn't have an active well being drilled.
Vermont, which has no known frackable gas reserves, banned fracking preventatively in May 2012. In March 2017, Maryland became the second state in the US with proven gas reserves to pass a law banning fracking.
