Fill and Sign the Oil Gas Mineral Lease Form

Prepared by:                   OIL, GAS AND MINERAL LEASE THIS AGREEMENT, entered into and effective as of             , 20       by and between       , a       corporation,       , as Agent and Attorney - In - Fact for       ,       ,       and       (hereinafter referred to as "Lessor") and       (hereinafter referred to as "Lessee”) witnesseth, that: Lessor, in consideration of the sum of       DOLLARS ($       ) and other valuable considerations hereby lease and lets unto Lessees, the right, insofar and only insofar as Lessor has a right to enter upon and use the land hereinafter described (hereinafter referred to as "Leased Premises for the search for, and production of oil, gas, sulphur and other minerals produced in conjunction therewith, for all purposes incident to the exploration for and production, ownership, possession, storage and transportation of said minerals and the right to dispose of salt water produced from the Leased Premises with the right of Ingress and Egress to and from said land at all times for such purposes, Including the right to construct, maintain and use roads and pipelines thereon for operations hereunder, Leased Premises being situated in the County of       , State of Mississippi, and more particularly described as follows, to - wit:       . The rights herein granted, including but not limited to, Lessee's right to use the surface of the Leased Premises are specifically limited to only the rights of Lessor acquired by Lessor in that certain Deed No.       effective             , 20       , recorded in Book       at Page       of the Conveyance Records of       County, Mississippi, and to which Deed, its record and the rights acquired therein, reference is herein made for all purposes. For the purpose of calculating the shut - in royalty, the Leased Premises shall be considered to comprise the number of acres as shown above totaling       gross acres and       acres, whether it actually more or less. This Lease shall be for a term of       (       ) years from the date hereof (hereinafter referred to as       ("Primary       ”) and so long thereafter as oil, gas or other mineral is being produced in paying quantities or       or       operations are conducted either on the Leased Premises or on acreage pooled therewith, as hereinafter provided. This Lease shall be for a term of       (       ) years from to date hereof, unless on or before said date       operations for       of a well on the Leased Premises, or on acreage pooled therewith in search of oil, gas or other minerals and thereafter continues such operations and drilling to completion or wherever       in this Lease, “operations for drilling,” “drilling operations” and “operations” be deemed to have been commenced when work is       or materials placed on the ground at or now       site       to the       (a well, but only when such operations are       with due       - and in a       manner so that once such operations are commenced, the well is thereafter promptly       and       .       at its option, is hereby given the       and power to pool or combine into a unit the acreage covered by this Lease or any portion thereof with other land, lease or leases in the immediate vicinity thereof, when in       ’s good faith judgment it to necessary or advisable to do so in order to property develop and       said Leased Premises. In       with lawful spacing rules which may be prescribed for the field in which Lease is       by any       authorized authority, or when to do so would, in the good faith judgment of       , promote the conservation of the oil and gas in and under and that may be produced from said premises.       shall execute and file for record an instrument identifying and describing the pooled acreage. The entire acreage so pooled into a       or unit shall be treated, for all purposes except the payment of royalties on production from the pooled unit, as in it were included in this Lease. If production is found on the pooled acreage, it shall be treated as if production has had from the portion of this Lease in the unit, whether the well or well be located on the premises covered by this Lease or not. In lieu of the royalties elsewhere herein specified, Lessor shall receive on production from a unit so pooled only such portion of the royalty as the amount of its acreage placed in the unit or its royalty interest thereon on an acreage basis beam to the total acreage so pooled in the particular unit involved. This pooling provision is specifically subject to the provisions of Paragraphs 6 and 7. At the end of the primary term of this Lease, or upon cessation of continuous drilling or rewording operations after       and of the       Term as provided in paragraph 9, this Lease will terminate automatically as to all horizons lying below a depth of       feet below the base of the deepest producing pool in each well drilled       on the Leased Premises or on other lands unitized with the Leased Premises on a bunk - by - bunk basis. Lessee shall furnish Lessor a release as provided for in paragraph 19 in recordable form as to such deeper rights within sixty (60) days of the expiration of the primary term, or cessation of continuous drilling or reworking operations as provided for in Paragraph 9. Anything in this Lease to the contrary notwithstanding the drilling or reworking of a well or production of oil or gas from any well included within a unit established by the Mississippi State Oil and Gas Board or other governmental agency embracing a portion of the Leased Premises shall serve to maintain this Lease in force only as to that portion of the Leased Premises embraced in such unit. The Lease may be maintained in force as to the remainder of the land in any other manner herein provided for. Lessee may, at any time prior to or after the discovery and production of oil or gas on the lands, execute and deliver to Lessor and place of record a release or releases of any portion or portions of the leased land and be relieved of all requirements hereof as to the land surrendered, except for any obligation incurred before the execution of such release or releases provided, however, that no land within a producing unit may be released without the written consent of Lessor. After the spudding in of a well and prior to the discovery and production of oil or gas in paying quantities, or, after discovery of oil or gas in paying quantities, production thereof should cease for any cause, Lessee may maintain In force the rights herein granted as to any unit during and after the primary term by continuing or resuming operations for drilling or reworking on such unit without the lapse of more than ninety (90) days between abandonment of work on one well and beginning operations for reworking or actually spudding in another well, at the expiration of the primary term of Lease, neither oil nor gas is being produced in paying quantities, but Lease has spudded in a well and is then engaged in actual drilling or reworking operations or has completed a dry hole within ninety (90) days prior to the expiration of the primary term, then the Lease shall not terminate but shall continue in force so long as said actual drilling or reworking is being continuously       on the premises as aforesaid, without lapse of more than ninety (90) days, or until production is established or restored in paying quantities. If at the expiration of the primary term of this Lease, oil or gas is not being produced in paying quantities and Lessee has not spudded in a well and is not engaged in actual drilling or reworking operations or has not completed a dry hole within ninety (90) days prior to the expiration of the primary term this Lease shall terminate. In the event oil or gas is being produced or is obtained in paying quantities from a unit after expiration of the       term and said       shall for any reason cease or terminate, Lessee       have the right at any time within ninety (90) days after the cessation of such production to resume drilling by actually spudding in a way or begin operations in an effort to restore production, in which event this Lease shall remain in force as to such unit so long as such operations are continuously prosecuted as above defined In this paragraph and they result in production of oil or gas, so long thereafter as such production continues from such unit in paying quantities. If at the end of this primary term hereof, Lessee has spudded in a well on a unit from which production has not theretofore been obtained, this Lease shall remain in affect as to the lands not included in units until such well or work have been convicted for production or plugged and abandoned, and so long thereafter as actual drilling operations are continuously prosecuted on additional units without a lapse of more than ninety (90) days between the cessation of operations on one well and the spudding of the next subsequent additional       . In the ninety (90) days lapse between operations additional wells after the end of the primary term hereof, this Lease shall terminate, subject to the provisions of Paragraph 22 hereof. In the event a well producing gas in paying quantities should be completed after the date of this Lease within       feet of and draining the Leased Premises, Lessee shall either commence the drilling of an offset well on the Leased Premises within ninety (90) days after       sales of production from the off premises producing       and drill said       well with diligence and in a workmanlike manner into the same formation under the Leased Premises from which the off - premises well is producing, or release those formations from which production is left obtained from the off - promises well under that part of the Leased Premises not located within a unit formed for a producing well drilled to a depth       equivalent to or deeper than the producing horizon in the off - promises well. Lessee should complete a well capable of producing gas in paying quantities but such gas is not sold or used off the premises because of lack of a market therefor or inability to obtain any necessary authority to produce the same, Lessee may pay or tender as royalty to the Lessor, on or before the expiration of ninety (90) days from (a) the date of completion of such gas well, or (b) the date such gas ceases to be sold or used, a sum equal to       Dollars ($       ) per acre for all land within the shut - in gas unit, which payment will maintain this Lease as to the acreage in said shut - in gas unit in full force and effect for a period of one (1) year from the expiration of said ninety (90) day period. In       manner, and upon the payment, on or before the anniversary of the last payment, this Lease may be maintained in full force and effect for       periods of one (1) year as long as such conditions exist, but not for a period In excess of three (3) years beyond the primary term. The royalties to be paid by       are: (a) On oil (which includes condensate and other liquid hydrocarbons when separated by lease separator units),       (       ) of that produced and saved from the Leased Premises and not used for fuel in conducting operations on the Leased Premises, or in treating such liquids to make them marketable; (b) On gas produced from or attributable to the Leased Premises and sold, including the gas remaining after the extraction of hydrocarbon products therefrom,       (       ) of the market value at the mouth of the well of the gas so sold, including casing head gas or other gaseous substances. The price to be used in computing the market value at the mouth of the well shall be the price received by Lessee under an arm's length gas sales contract prudently negotiated in the light of the facts and circumstances existing at the time of consummation of such       ; (c) With respect to gas used other than for operations hereunder, including casing head       " of       gaseous substances, royalty shall be       (       ) of the market value at the mouth of the wag as       in subparagraph (b) above; provided if Lessee is not       gas under an arms length contract as       in subparagraph (b) above. The "market value of gas used other than for operations hereunder, including casing head gas or other gaseous substance, shall be the fair value at the mouth of the wag at the time of production but not low       average of the prices paid under       circumstances for gas of       and quality from the field from which such       being produced or in no gas is sold from       , the average of prices paid under       for gas of kind and quality in the three nearest fields to be sold; (d) On       and       by Less" from       casing head gas or other gaseous       produced from or       to the Leased Premises by       , through any plant or       , wholly owned or operated by       so or any affiliate of Lessee or by a       other than                   of the not       by Lessee for not being the net amount owed by the       after deducting any reasonable       of processing such gas through said plant or       ; (e) Lessee shall have free use of all oil, gas or any component thereof used in lease or unit operations as well as gas,       components thereof injected into subsurface strata as hereinafter defined. Lessee shall have the right to inject 9" of water, brine or other fluids into       strata, and no royalties       be due or computed on any 9" or component thereof by and injected into subsurface stratum of strata through a well or wells located either on the Leased Promises or a unit containing all or a part of the Leased (f) On sulphur,       (       ) of that produced and saved from the Leased Premises, payable when marketed; (g)       (       ) of the market value at the well or mine of all other minerals produced and saved or mined and marketed; (h) Oil royalties shall be delivered to Lessor free of expense at Lessee’s option in tanks furnished by       at the       or to Lessee’s credit in any pipeline connected therewith. In the event Lessee does not furnish tanks for such royalty oil and no pipe is connected with the well, Lessee will sell such oil at the best price obtainable and pay Lessor the received       the Leased Property less only severance or production tax imposed thereon; (1) Lessor is entitled to and shall be paid royalty not only on the oil, gas and other minerals, produced, saved and sold or used pursuant to the terms of the Lease, but on all other monetary benefit received by Lessees from purchasers of oil, by virtue of       , but not limited to, gas take - or - pay payments, gas contract buy - out or buy - down settlement, gas reservation fees or other fees received as a result of gas sales       ; and All royalty money is due hereunder to Lessor during any month in which Lessee is purchaser of Lessee’s royalty worse production, shall be paid on or before one hundred twenty (120) days from to date of first production from any well located on the leased or on acreage pooled therewith, and thereafter shall be paid on or before the       day of each       month. All royalty money due and not timely tendered shall accrue interest at the rate of prime rate plus one (1%) percent on a daily basis determined by       ,       ,       , Mississippi. Failure to pay royalties within one hundred twenty (120) days from the date of first production or thereafter to       pay royalty monthly shall be grounds for termination of this Lease. So long as Lessee is making payments and is making a good faith effort to       property and pay royalties due Lessee this Lease shall not be subject to termination for failure to pay the proper amount of royalty. Any provisions herein shall inure to the benefit of and bind the successors and assigns of Lessor and Lessee, but regardless of any actual or       notice thereof, no change in the ownership of the Leased Premises or any interest therein or change in the capacity or status of Lessor or any other owner of rights hereunder shall impose any additional burden on Lessee, or be binding on Lessee for making any payments hereunder unless, at least thirty (30) days before any such payment is due, said owner of this Lease shall be been furnished with a certified copy of the recorded instrument evidencing such change in status or       of Lessor. The       of such       shall not affect the validity of payments theretofore made in advance. An assignee may exercise the rights and discharge the obligations of the Lessor       Joinder of any assignee. In the event of an assignment of the Lease. Lessor shall be furnished a copy of such assignment within ninety (90) days of the recordation of same. This Lease is granted by Lessor and       by       without warranty, express or implied       to the return of the purchase price, royalties or any other payments or consideration received or due to Lessor. Lessee may, at       option, discharge any tax, mortgage or       upon the Leased Premises. Lessor       loss than the entire       interest in all or any portion of the Leased Premises or       rights relating thereto, all royalties or any       should be reduced proportionately to the interest of Lessor thereon. All outstanding royalty rights in others shall be deducted from the royalties herein provided for. In the event Lessor at any time considers that operations are not being conducted or payments made in compliance with this Lease, Lessor shall notify       in writing of the facts rallied upon as constituting a breach hereof, and Lessee and       have sixty (60) days after receipt of such notice in which to       any operations that are necessary to comply with the requirements hereof. The service of said notice and the lapsed sixty (60) days without Lessee meeting or commencing to meet the alleged breach shall be a condition precedent to carry action by Lessee for any cause hereunder. The requirements hereof shall be subject to any State and/or Federal law or order regulating operations on the Leased Premises. Should Lessee be prevented from       with any express or implied covenants of this Lease other than the payment of royalty or       in royalty, from conducting drilling or reworking operations thereon, or from producing oil, gas or other mineral therefrom by reason of scarcity or inability, after effort made in good faith, to obtain equipment or material or authority to use same, or by failure of carriers to transport or furnish facilities for transportation, or by operation of force majors, any Federal or State law, or any order, rule or regulation of governmental authority, or other cause beyond. Lessee's control, than while so       , Lessee's obligation to comply with such covenant "I be suspended and Less" shall not be liable for damages for failure to comply therewith; and this Lease shall be extended while and so long as Lessee is prevented by any such cause from conducting drilling or reworking operations on or from producing oil, gas or other mineral from the Leased Premises and the time while       is so       shall not be counted against       , provided however, in no event will this Lease be extended under the terms of this Paragraph for more than two (2) consecutive years beyond the expiration of the Primary Term. Payment of royalty shall be made to Lessors directly in their proportionate share at addresses to be provided to Lessee by       payment of shut - in royalty due under this Lease shall be made to       ,       ,       . Lessor shall have the right at all reasonable times, personally or by representative, to       and copy books, accounts, assignments, contracts, records and data of       pertaining to production and marketing on the Leased Premises. As to any and all       drifted on the Leased Premises, or land pooled therewith, Lessee agrees to furnish Lessor the following: (a) The representative of Lessor shall have full and free access to said well or web and to the derrick floor, at Lessor’s risk at all reasonable hours, and full and complete information which shall include, but not be limited to, the right to examine samples, cores and the right to       all tests and producing operations of said well or wells; (b) Daily drilling reports including depth, footage drilled within the last 24 hours, present operation, formation, mud weight,       , water loss, deviation, pertinent remarks, and days since spud, such report to be telephoned and/or telefaxed daily (exclusive of Saturdays, Sundays and legal holidays) as per instructions of Lessor, at Lessees expense; (c) When mud logging, daily mud logs and mud log shows are to be telefaxed daily (exclusive of Saturdays, Sundays and legal holidays) as per instructions of Lessor, at Lessee's expense; (d) Lessee agrees to furnish Lessee the following data and Information, available, regardless of whether said well or weft are completed as a producer or as a dry hole, and additionally on any Remodeling Operations; (e) One copy of all applications and reports made by Lessor with any duty authorized authority having jurisdiction in connection with Lessee’s operations hereunder shall also be made to Lessor simultaneously with Lessee's mailing of such application and reports to the said authority; (f) Two printed copies       , digital copy of any clock log       obtained, in LAS, LIS, or ASCII       final       , drill stern test core analysis,       survey or any other ton - MMA - 1 survey made in such well or work within 48 hours (exclusive of Saturdays, Sundays and legal holidays) of such being available to Lessee.       well is       as a producer, otherwise, only one copy,       . (1) Ten (10) days to the spudding of any well on the Leased Premises or on lands pooled       ; (2) Any coring operation - A; (3) Any drill stem tests; (4) The running of any       logs; (5) Any plugging operation; (6) Any reworking operations.       Such 0OP183 hereunder are to be delivered to Lessor free of charge; (g) Lessee will maintain the confidentiality of all material furnished to Lessor upon request; (h) In addition, Lessee agrees to furnish to Lessor, free of charge, all field notes of land surveys, maps, plats,       tide curative records relating to Lessee’s title, abstracts of title and       opinions, in that entirety,       or obtained by the losses relating to the Leased Premises, and rendered by the attorney for losses, any purchaser of the production hereunder, or furnished to Lessee by any party; and (i) By mutual agreement       the parties herein, inspection (access) records and information required by Paragraph 15 herein of       lease shall extend to: (j) To initial well drilled on the prospect whether or not any of       minerals are       in the       for said initial       , and (2) As to any well drilled on a unit       or adjacent to losses minerals or any established       which             minerals. Within sixty (60) days after the expiration, cancellation or termination of this Lease or any portion thereof, for any cause whatsoever, except for Lessee’s release of acreage in accordance with Paragraph 8, Lessor shall deliver to       an instrument executed by       in recordable form, that designates the wells, if any,       retain lands as of the date of execution of the instrument,       sets forth the description of the leased lands and horizons that are retained by each such well, if any, as of the date of execution of the instrument and releases all acreage and horizons that are not retained by such wells. Failure to furnish said instrument subject losses to a penalty payable to Lessor in the amount of       AND       ($       ) DOLLARS per day for each and every day after sixty (60) days allowed above during which Losses shall to furnish said       receipt of said penalty shall not affect Lessor’s right to collect from Lessees any actual damages incurred due to Lessee’s breach of the obligations of this paragraph. Lessee shall be responsible for all damages caused by Lessee's operations. Lessees hereby releases and discharges       from and shall indemnify and save Lessee harmless from and against any and all liability, damages       direct, remote and consequential damages) cost and expenses including cost of investigation, litigation and a reasonable attorney’s fee incident to, arising out of or in any way, directly or indirectly connected with       damage to or       of property of any person whomever, or injury to including injury resulting in death) or death       person whomsoever, which would not have       or accrued but for       execution of this instrument or for the exercise by Lessee (agents, servants or       ”) Lessee’s contractors (and agents, servants, or employees of any of said contractors), or Lessee’s licensees or       of the rights and privileges herein conferred on Lessees or resulting from the operation of Lessee howsoever performed on or about the Leased Premises or from the breach of all or any of the covenants or       hereof. Without limitation by Lessees will be responsible and indemnify and hold Lessee harmless from any and all environmental and       damages. Lessee will comply in full with       statutes and all rules and regulations of Regulatory Body and will indemnify hold Lessor harmless from any and all claims, demands, losses, fines and penalties arising out of Lessee violations, of any such statute rules or regulations. Any assignment, transfer or sublease of this Lease will contain specific provisions obligating all assignees to protect the rights of Lessor within the term of this Loan and specifically, but not limited to Lessee's obligations under Paragraph 20 above. In no event shall any such assignment be valid unless Lessor is furnished with a copy of the recorded assignment within ninety (90) days from the date of recordation. However, should Lessee assign all or any portion of the rights herein delivered, in no event shall any operations or any portion of the Leased Premises be included within the confines of a producing unit without Lessor first being notified of any such assignment. In any event that Lessee should not provide such amendment(s) or notification(s) as stipulated herein, then Lessee shall be subject to the same penalty as provided for in paragraph 19 hereinabove. In case of execution, cancellation or termination of this Lease or any portion thereof, for any cause whatsoever, except for fraud or failure to pay royalties as provided in paragraph 12, and subject to the provisions of Paragraphs 6 and 7, Lessee shall have the right to retain under the terms hereof around each well producing, being reworked, or being       hereunder, or shut in but capable of producing, Lessor’s interest in the number of acres allotted to each such well by the spacing pattern validly fixed for the pool by the Mississippi State Oil and Gas Board or any other governmental body, State or Federal. Lessee hereby assumes all obligations of every kind pertaining to the interests arising from the date hereof and shall comply with any laws, ordinances, rules and regulations affecting the same. Lessee shall fully protect and defend Lessor and its agents and/or employees and hold them harmless from any and all claims, losses, damages, demands, suits, causes of action (including attorneys fees, costs of litigation and/or investigation and other costs also stated therewith) (collectively referred to as claims relating to injury or death of any person or persons whomsoever, damage to or loss of property or, claims for liability under the Comprehensive Environment, Compensation and Liability Act, 42 U.S.C. 9601, pl. M.. as the same may be amended), arising out of or connected, directly or indirectly, with the ownership operation of the interests, or any part thereof, accruing at or after the effective time, regardless of cause, fault imposed by statute, rule or regulation, strict liability or negligent ads or omissions of either party hereto or otherwise. If Lessor brings suit to compel performance of or to recover for breach of any covenant or condition herein contained or implied and prevails therein, Lessee agrees to pay Lessor reasonable attorneys fees and expert witness fees in addition to the amount of judgment and cost. All notices required or permitted to be sent hereunder shall be made as follows: (a) To the Lessor.                   Attention:       and                   (b) To the Lessee.                   Any notice should be sent by certified mail and shall be binding on the parties hereto as well as their successors and assigns, except that either party hereto, and its successors and assigns shall then the right by written notice to change the name or address to which any such notices shall be directed. IN WITNESS WHEREOF, this agreement is signed in multiple originals, and equal dignity and effect as of the date hereinabove written.       a       corporation, as Agent and Attorney - in - Fact for                                           Corporation       Trust                   WITNESSES: BY:       , President Tax I.D. #       STATE OF       PARISH OF       THIS DAY personally appeared before me, the undersigned authority, in and for said parish and state, the within named       , who acknowledged that he/she is the       of       , as Agent and Attorney - In - Fact for       ,       ,       ,       ,       ,       ,       , and       , a       corporation, and that he/she signed and delivered the foregoing instrument on the day and year therein stated, for and on behalf of said corporation, being by duty authorized so to do. GIVEN under my hand and official seal on this the       day of       , 20       . NOTARY PUBLIC MY COMMMSION EXPIRES: