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Amendment to Oil and Gas Lease for Paid-Up Extension of Primary Term...

Wyoming Amendment to Oil and Gas Lease for Paid-Up Extension of Primary Term of Lease

Q: What is a paid up oil and gas lease?

If a lease is a &quot;paid-up&quot; lease, then the lease will remain in effect during the entire primary term with no further payments to the Lessor unless and until actual production of oil or gas is established.

Category:

Oil Gas and Minerals - Amendments

State:

Multi-State

Control #:

US-OG-575

Format:

Instant download

Description

This form is an Amendment to an Oil and Gas Lease (to provide for a Paid-Up Extension of Primary Term of Lease).

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FAQ

The General Mining Act of 1872 regulates gold, silver, cinnabar, copper, and ?other valuable deposits.? This legislation still governs extraction of many nonenergy minerals, like hardrock locatable minerals. The Minerals Leasing Act of 1920 limited the scope of the 1872 Act.

Under the Mineral Leasing Act as amended and the Mineral Leasing Act for Acquired Lands of 1947 as amended, coal leases are initially obtained for a 20-year period but can be terminated in 10 years if the resources are not sufficiently developed.

Approved by the 66th United States Congress, the act was signed into law by President Woodrow Wilson on February 25, 1920.

There are two terms in a gas and oil lease: known as the primary term and the secondary term. Normally, the primary term is for a specific amount of time which lasts between the period of 1, 3, 5, 7 or 10 years.

A Pugh Clause is enforced to ensure that a lessee can be prevented from declaring all lands under an oil and gas lease as being held by production. This remains true even when production only takes place on a fraction of the property.

Suspensions under Section 39 of the MLA suspend both operations and production activities. Section 39 suspensions may be directed or granted by the Authorized Officer (AO) only in the interest of conservation of natural resources.

If a lease is a "paid-up" lease, then the lease will remain in effect during the entire primary term with no further payments to the Lessor unless and until actual production of oil or gas is established.

The Mineral Leasing Act (MLA) is a United States federal law that authorizes the leasing of public domain lands for exploring and developing coal, oil, natural gas, and other minerals. Enacted in 1920, it has undergone numerous amendments.