Common use of SEISMIC AND PIPELINE PAYMENTS Clause in Contracts

SEISMIC AND PIPELINE PAYMENTS. If Lessee conducts seismic operations on Lessor's (or surface owner if different from Lessor) lands or should Lessee lay pipelines across the leased premises, then Lessee shall be required to compensate the surface owner based on the prevailing rate being paid in the area at the time for surface damages as a result of such operations. Seismic permit agreements must be prepared and presented to the surface owner along with estimated compensation to be paid to the surface owner thereof, prior to commencement of such operations. Nothing herein shall restrict Lessee's right to lay pipelines for transportation of lease gas or conduct seismic operations on leased premises. All pipeline locations shall be shown in advance to surface owners, sendoros shall be blade wide, shall be disked and planted in Coastal Bermuda grass, and dog-legged at the boundary lines as instructed by the surface owners and terraces shall be constructed across any clearings or pathways made by Lessee in such a manner as may be necessary to prevent erosion. Each pipeline right-of-way shall be reduced to writing on a form agreed by surface owner and Lessee. Surface owner shall have the right to require the pipelines be cut off from other lines at the termination of the Lease. All pipelines shall be buried at leased thirty-six (36) inches below the surface.

Appears in 2 contracts

Sources: Oil, Gas and Mineral Lease (Thrust Energy Corp.), Oil, Gas and Mineral Lease (Thrust Energy Corp.)