O-1988-1622 - Laserfiche WebLink

Browse Search

e e primary term, this lease shall remain in force so long as operations on said well or for the drilling or reworking of any well are prosecuted with no cessation of more than sixty (60) consecutive days, and if they result in the production of 'oil, gas or other liquid hydrocarbons, this lease shall remain in force as hereinabove provided so long thereafter as oil, gas or other liquid hydrocarbons is produced from said land, 'or on acreage pooled therewith (if so provided for in this lease). In the event, and during such period of time, this lease is being continued in effect under the pro- visions of this paragraph, Lessee shall render to Lessor weekly re- ports of all operations begun, conducted or terminated by Lessee upon the leased premises, including, but not limited to, daily progress information regarding each well until oil, gas or other liquid hydrocarbons are produced and royalties paid thereon, or until the lease is surrendered to Lessor. Reworking operations hereunder shall be deemed to be commenced when the first work is commenced and prosecuted with reasonable diligence and drilling operations on a new well shall be deemed to be commenced on the date when the well is spudded in with a rig capable of reaching the permitted depth and shall be deemed concluded when such rig is released. 10. PARTIAL RELEASE CLAUSE: If, at the expiration of the primary term of this lease or any extension thereof which may occur in accordance with any provisions herein contained, any part or parts of the leased premises is not included within a well tract or unit from which production of either oil or gas is being ob- tained, this lease shall be terminated as to all the leased pre- mises not otherwise being maintained under some other provision hereof, except as to a 40 acre well tract or unit to be selected by Lessee, surrounding each well capable of producing oil in paying quantities and except as to a 160 acre well tract or unit to be selected by Lessee surrounding each well capable of producing gas in paying quantities: provided, however, that in the event any municipal, state or federal governmental agency asserting juris- diction prescribes a spacing pattern for the orderly development of the field or allocates the producing allowable for a well with acreage content as a factor, and either of which is in excess of the above prescribed acreage, then such well tracts or units thereafter created may conform in size with those so prescribed by such govern- mental agency. Each such well tract or unit shall be in the form of a square or rectangle or other reasonable configuration accept- able to the governmental authority having jurisdiction for prodUC- tion or proration purposes. At the end of the primary term of this lease or any extension thereof which may occur in accordance with any provision herein contained, this lease will terminate automati- cally as to all the mineral estate lying more than one hundred (100) feet below the deepest producing depth within each well tract-in which Lessee has completed a well as a commercial producer of oil and/or gas on the lands described in this lease. Lessee shall forthwith execute and file of record in the county in which the property is located, and deliver to Lessor, the recorded release of all the leased premises terminated as herein provided. Similarly, if after the primary term of this lease or any extension thereof which may occur in accordance with any provisions herein contained, and after production has been obtained, the deepest producing horizon of a well should be abandoned or a gas well should become an oil well (according to criteria established by the governmental authority, asserting jurisdiction), Lessee shall forthwith execute and file of record in the county in which the property is located and deliver to Lessor the recorded release of all the mineral estate not previously released lying more than one hundred feet (100') below the deepest producing depth within the particular well tract or unit and/or a recorded release of all the mineral estate lying outside a well tract or unit of the size herein * or unit 7