Release Clause. At the expiration of the primary term, or upon cessation of the continuous development program, if applicable, this lease shall ipso facto terminate as to all lands covered hereby, SAVE AND EXCEPT one hundred sixty (160) acres surrounding each oil and gas covered lease shall continue in force and effect as to the proration unit surrounding each well required to obtain such full allowable. Lessee shall, within thirty (30) days after the expiration of this lease or parts hereof, file of record in the office of the County Clerk of Webb ▇▇▇nty, Texas, an instrument releasing this lease insofar as said lease has terminated, specifically describing by metes and bounds or other proper legal description the retained unit for each producing well and the depth which may be retained by Lessee thereunder. In the event Lessee shall fail to either designate a unit or units or fail to release acreage and/or horizons of record within sixty (60) days after the expiration of this lease by Lessee filing such designation or release in the Office of the County Clerk of Webb ▇▇▇nty, Texas, then Lessors shall notify the Lessee of its failure and if within thirty (30) days of the date of such written notice by certified mail to Lessee, Lessee does not designate unit or units or release the acreage or horizons by filing a proper instrument in the Office of the County Clerk of Webb ▇▇▇nty, Texas, then Lessor shall make the designation of unit or units or release of acreage and/or horizons by filing the instrument designating the unit or units or release of acreage and/or horizons in the Office of the County Clerk of Webb ▇▇▇nty, Texas, and such designation and/or release by Lessors shall be binding upon the Lessees. 8 At such time as a partial termination of this lease occurs under the provisions of this paragraph, each such retained unit as to which said lease has not terminated shall be considered as a separately leased tract, in the same manner as if Lessor had executed separate and distinct leases covering each such retained unit. Lessee shall not be obligated to protect against drainage, if any, between and among "separately leased tracts". Notwithstanding a partial termination of this lease under the above provisions, it is agreed that Lessee shall have and retain such easements of ingress and egress over those lands originally covered hereby as shall be necessary to enable Lessee to develop and operate the portion or portions of this lease then in effect for the production of oil or gas therefrom; and, it is further agreed that it shall not be necessary for Lessee to remove or relocate any pipelines, tank batteries or other surface equipment or installations from any portions of this lease which have terminated for so long as same continue to be used for the development of and operations on such portions of this lease as continued in force and effect. The drilling of well▇ ▇▇ accordance with spacing provisions of Paragraph 10 shall not be construed as an agreement or consent on the part of Lessor that such drilling constitutes reasonable development of the leased premises, but Lessee agrees to drill all such additional well or well▇ ▇▇ the leased premises, or such portion or portions thereof as may be in force and effect from time to time, as would a reasonably prudent operator under the same or similar circumstances in order to reasonably develop the same for the production of oil and/or gas.
Appears in 1 contract
Release Clause. At Notwithstanding any other provision in this lease to the contrary, at the expiration of the primary termterm of this lease or, or upon cessation if later, the end of the continuous development program, if applicableextended period provided below, this lease shall ipso facto terminate as to all lands covered hereby, SAVE AND EXCEPT the interest of Lessee in and to that part of the leased premises allocated to each proration unit upon which a producing well is located in accordance with the acreage limitation provided in Paragraph 17 A; and further SAVE AND EXCEPT that part of the leased premises included in a pooled unit in accordance with Paragraphs 17 and 17 A upon which a producing oil or producing gas well is located; and further SAVE AND EXCEPT the interest of Lessee under each such retained tract from the surface to one hundred sixty feet (160100') acres surrounding below the stratigraphic equivalent of the base of the then deepest producing formation in which the Lessee has an interest, together with acreage around such wellbore that corresponds with the formula set forth above. For the purposes of this Paragraph 18, the point of production for purposes of determining the amount of acreage which Lessee may allocate to each oil well shall be the deepest producing perforation at the date release or partial release are called for in this paragraph and gas covered at that time, the acre designations may be increased by a ten per cent (10%) tolerance. Notwithstanding the above, in the event the Railroad Commission of Texas (or other governmental authority having jurisdiction) requires, as opposed to permits, pursuant to applicable field rules, the allocation of larger or smaller tracts of land or units to any such producing well in order to obtain the maximum production allowable, then this lease shall continue in force and effect as to the proration unit amount of acreage surrounding each well required to obtain such full allowableallocation. Lessee shall, within thirty (30) days after upon the expiration of this lease or parts hereof, file of record in the office of the County Clerk of Webb ▇▇▇ ▇▇▇nty▇▇ County, Texas, an instrument releasing this lease insofar as said lease has terminated, specifically describing by metes and bounds or other proper legal description the retained unit for tracts surrounding each producing well and the depth depths which may be retained by the Lessee thereunder. In If requested by Lessor, Lessee shall, whether prior to recording such release or later, deliver to Lessor a plat depicting the event location of each retained tract along with the log of each well within a retained tract and proof of the depth claimed by Lessee shall fail to either designate be retained within each tract. If, on the dates the partial releases called for herein would otherwise be required, Lessee is then engaged in the actual drilling of a unit well in search of oil or units gas on the land covered hereby or fail to release acreage and/or horizons has drilled a well thereon within a period of record within sixty one hundred and eighty (60180) days after prior to such date (i.e. the expiration extended period referred to above), then the provisions of this lease by Paragraph 18 shall not be applicable until such time as the Lessee filing such designation allows a period of one hundred and eighty (180) consecutive days to lapse between the completion of a well and the actual commencement of drilling (as defined under definitions below) on subsequent well or release in the Office of the County Clerk of Webb ▇▇▇nty, Texas, then Lessors shall notify ▇▇ on the Lessee of its failure and if within thirty (30) days of the date of such written notice by certified mail to Lesseelands covered hereby or pooled lands herewith. Provided however, Lessee does not designate unit or units or release shall be entitled to accumulate and later use time saved between the acreage or horizons by filing a proper instrument in the Office drilling of the County Clerk of Webb ▇▇▇nty▇▇ up to a maximum of one hundred and eighty (180) days; however, Texas, then Lessee shall inform Lessor shall make the designation in writing of unit or units or release time saved and of acreage and/or horizons by filing the instrument designating the unit or units or release of acreage and/or horizons Lessee's intent to use such time in the Office of the County Clerk of Webb ▇▇▇nty, Texas, and such designation and/or release by Lessors shall be binding upon the Lesseesfuture. 8 At such time as a partial termination of this lease occurs under the provisions of this paragraph, each such retained unit as to which said lease has not terminated tract shall be considered as a separately leased tract, in the same manner as if Lessor had executed separate and distinct leases covering each such retained unittract. Lessee shall not be obligated to protect against drainage, if any, between and among "separately leased tracts". Notwithstanding a partial termination of this lease under the above provisions, it is agreed that Lessee shall have and retain such easements of ingress and egress including the right to lay pipelines over those lands originally covered hereby partially released so as shall be necessary to enable Lessee to develop and operate the portion or portions of this lease then in effect for the production of oil or gas therefrom; andretained tracts. Further, it is further agreed that it shall not be necessary for Lessee to remove or relocate any pipelines, tank tanks and batteries or other surface equipment or installations from any portions of this lease lease, which have terminated for so long as same it continue to be used for the development of and operations on such portions of this lease as continued in force and effectretained tracts. The drilling of well▇ ▇▇ accordance with spacing provisions of formula set forth in Paragraph 10 18 above for retaining tracts shall not be construed as an agreement or consent stipulation on the part of Lessor that such drilling constitutes reasonable development of the leased premises, but . Lessee agrees to drill all such additional well or well▇ ▇▇▇▇▇ the leased premiseson each retained tract, (or such portion or portions thereof as may be in force and effect from time to time, ); as would a reasonably prudent operator under the same or similar circumstances in order Operator to reasonably develop the same for the production of oil and/or gas. In the event Lessee fails to timely record said release or partial release required under this lease pursuant to Paragraph 17 A herein, Lessor shall, if such release is not recorded within sixty (60) days of receipt of written demand of Lessor, be entitled to execute and record an affidavit indicating expiration of the lease period. It is expressly agreed and understood by Lessor and Lessee that such affidavit shall effect as a release executed by the Lessee.
Appears in 1 contract
Release Clause. At Notwithstanding any other provision in this lease to the contrary, at the expiration of the primary termterm of this lease or, or upon cessation if later, the end of the continuous development program, if applicableextended period provided below, this lease shall ipso facto terminate as to all lands covered hereby, SAVE AND EXCEPT the interest of Lessee in and to that part of the leased premises allocated to each proration unit upon which a producing well is located in accordance with the acreage limitation provided in Paragraph 17 A; and further SAVE AND EXCEPT that part of the leased premises included in a pooled unit in accordance with Paragraphs 17 and 17 A upon which a producing oil or producing gas well is located; and further SAVE AND EXCEPT the interest of Lessee under each such retained tract from the surface to one hundred sixty feet (160100') acres surrounding below the stratigraphic equivalent of the base of the then deepest producing formation in which the Lessee has an interest, together with acreage around such wellbore that corresponds with the formula set forth above. For the purposes of this Paragraph 18, the point of production for purposes of determining the amount of acreage which Lessee may allocate to each oil well shall be the deepest producing perforation at the date release or partial release are called for in this paragraph and gas covered at that time, the acre designations may be increased by a ten per cent (10%) tolerance. Notwithstanding the above, in the event the Railroad Commission of Texas (or other governmental authority having jurisdiction) requires, as opposed to permits, pursuant to applicable field rules, the allocation of larger or smaller tracts of land or units to any such producing well in order to obtain the maximum production allowable, then this lease shall continue in force and effect as to the proration unit amount of acreage surrounding each well required to obtain such full allowableallocation. Lessee shall, within thirty (30) days after upon the expiration of this lease or parts hereof, file of record in the office of the County Clerk of Webb J▇▇ ▇▇▇nty▇▇ County, Texas, an instrument releasing this lease insofar as said lease has terminated, specifically describing by metes and bounds or other proper legal description the retained unit for tracts surrounding each producing well and the depth depths which may be retained by the Lessee thereunder. In If requested by Lessor, Lessee shall, whether prior to recording such release or later, deliver to Lessor a plat depicting the event location of each retained tract along with the log of each well within a retained tract and proof of the depth claimed by Lessee shall fail to either designate be retained within each tract. If, on the dates the partial releases called for herein would otherwise be required, Lessee is then engaged in the actual drilling of a unit well in search of oil or units gas on the land covered hereby or fail to release acreage and/or horizons has drilled a well thereon within a period of record within sixty one hundred and eighty (60180) days after prior to such date (i.e. the expiration extended period referred to above), then the provisions of this lease by Paragraph 18 shall not be applicable until such time as the Lessee filing such designation allows a period of one hundred and eighty (180) consecutive days to lapse between the completion of a well and the actual commencement of drilling (as defined under definitions below) on subsequent well or release in the Office of the County Clerk of Webb w▇▇▇nty, Texas, then Lessors shall notify ▇ on the Lessee of its failure and if within thirty (30) days of the date of such written notice by certified mail to Lesseelands covered hereby or pooled lands herewith. Provided however, Lessee does not designate unit or units or release shall be entitled to accumulate and later use time saved between the acreage or horizons by filing a proper instrument in the Office drilling of the County Clerk of Webb w▇▇▇nty▇ up to a maximum of one hundred and eighty (180) days; however, Texas, then Lessee shall inform Lessor shall make the designation in writing of unit or units or release time saved and of acreage and/or horizons by filing the instrument designating the unit or units or release of acreage and/or horizons Lessee's intent to use such time in the Office of the County Clerk of Webb ▇▇▇nty, Texas, and such designation and/or release by Lessors shall be binding upon the Lesseesfuture. 8 At such time as a partial termination of this lease occurs under the provisions of this paragraph, each such retained unit as to which said lease has not terminated tract shall be considered as a separately leased tract, in the same manner as if Lessor had executed separate and distinct leases covering each such retained unittract. Lessee shall not be obligated to protect against drainage, if any, between and among "separately leased tracts". Notwithstanding a partial termination of this lease under the above provisions, it is agreed that Lessee shall have and retain such easements of ingress and egress including the right to lay pipelines over those lands originally covered hereby partially released so as shall be necessary to enable Lessee to develop and operate the portion or portions of this lease then in effect for the production of oil or gas therefrom; andretained tracts. Further, it is further agreed that it shall not be necessary for Lessee to remove or relocate any pipelines, tank tanks and batteries or other surface equipment or installations from any portions of this lease lease, which have terminated for so long as same it continue to be used for the development of and operations on such portions of this lease as continued in force and effectretained tracts. The drilling of well▇ ▇▇ accordance with spacing provisions of formula set forth in Paragraph 10 18 above for retaining tracts shall not be construed as an agreement or consent stipulation on the part of Lessor that such drilling constitutes reasonable development of the leased premises, but . Lessee agrees to drill all such additional well or well▇ w▇▇▇▇ the leased premiseson each retained tract, (or such portion or portions thereof as may be in force and effect from time to time, ); as would a reasonably prudent operator under the same or similar circumstances in order Operator to reasonably develop the same for the production of oil and/or gas. In the event Lessee fails to timely record said release or partial release required under this lease pursuant to Paragraph 17 A herein, Lessor shall, if such release is not recorded within sixty (60) days of receipt of written demand of Lessor, be entitled to execute and record an affidavit indicating expiration of the lease period. It is expressly agreed and understood by Lessor and Lessee that such affidavit shall effect as a release executed by the Lessee.
Appears in 1 contract