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What is the purpose of an entireties clause in an oil and gas lease covering Texas Land?

What is the purpose of an entireties clause in an oil and gas lease covering Texas Land?

Most oil and gas leases, with certain conditions, permit the lessee to develop the leasehold as a whole, so that drilling one well on one tract covered by the lease will satisfy drilling obligations for all tracts covered by the lease.

What is an entireties clause?

In Oil & gas law, the entirety clause is a mineral-lease or deed provision which specifies that royalties must be apportioned if the property is subdivided after the lease is granted. For the lessee, the clause makes it clear that the lessee’s duties will increase if the lessor transfers a part of the leased premises.

What is the rule of non apportionment in Texas?

Under Texas law, there is a rule of non-apportionment. It sets out that when the property is subdivided after the lease is already in place on the tract, the royalties are not apportioned but given to the royalty interest owner on whose property the well physically sits. Delay rentals however are apportioned.

What is the difference between pooling and unitization?

As noted above, while pooling focuses on efficiently combining lands for the purpose of obtaining a drilling permit to drill a single well, unitization focuses on the combination of interests covering a larger area to facilitate development of all or part of a common source of supply (i.e. a field/reservoir).

What is a Mother Hubbard clause in a judgment?

A “Mother Hubbard” clause is a statement that “all relief requested and not herein granted is denied.” In response, and often in misapplication of Mafrige, parties were routinely inserting Mother Hubbard clauses into every summary judgment order, whether or not it was intended by the court to be a final order as to all …

Is a Habendum clause required?

A habendum clause is a clause in a deed or lease that defines the type of interest and rights to be enjoyed by the grantee or lessee. Many states, such as Pennsylvania, require a deed to have a habendum clause in order for the deed to be officially recorded and recognized by the Recorder of Deeds.

What is a ratification of oil and gas lease?

To “ratify” a lease means that the landowner and oil & gas producer, as current lessor and lessee of the land, agree (or re-agree) to the terms of the existing lease.

How much land do you need to drill for oil?

The process of drilling and completing an oil or gas well is obviously going to cause disturbance to the surface. A typical footprint needed for drilling, completion, and subsequent production is generally in the 3 to 10 acre range.

What is an oil and gas pooling agreement?

Pooling is the combination of all or portions of multiple oil and gas leases to form a unit for the drilling of a single oil and/or gas well. The oil and gas company can lease these under separate leases and separate terms and then “pool” these parcels to drill the well.

What is a Pugh clause in an oil and gas lease?

Defining the Pugh Clause A Pugh Clause is meant to prevent a lessee from declaring all lands under an oil and gas lease as being held by production, even if production only occurs on a fraction of the property.

What is a habendum clause in a deed?

In real estate contracts, the habendum clause refers to the transfer of ownership of a property and any accompanying restrictions. Because the clause begins with the phrase, “To have and to hold,” the habendum clause is sometimes called the “to have and to hold clause.”

What is the granting clause in a deed?

Commonly referred to as the “Granting Clause”, it identifies the grantor and grantee, and states that the property is being transferred between the two parties. Habendum clause. Defines the interest or estate being conveyed and must agree with the words in the granting clause.