# Depth Clause Clarrification

**URL:** https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670
**Category:** General Mineral Rights Discussion
**Created:** [December 28, 2016, 7:38pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670 "2016-12-28T19:38:20Z")
**Posts on this page:** 6
**Page:** 1

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### Author: ![KP\_Young](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/k/47e85d/32.png) [@KP\_Young](https://www.mineralrightsforum.com/u/KP_Young)
#### Post date: [December 28, 2016, 7:38pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/1 "2016-12-28T19:38:20Z")

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We have been approached by two companies separately in recent months for oil and gas leases. One operator is interested in the Eagle Ford and the other is interested in both the Austin Chalk which sits above the EF, as well as the Buda which sits beneath the EF. I’m curious as to how I would structure a depth clause in this situation? Do I need to have two separate contracts for the operator that’s interested in the Austin Chalk and Buda in order to protect my EF lease rights?

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### Author: ![James\_Marrow](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/james_marrow/32/14142_2.png) [@James\_Marrow](https://www.mineralrightsforum.com/u/James_Marrow)
#### Post date: [December 29, 2016, 10:47pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/2 "2016-12-29T22:47:45Z")

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Not a lawyer, but would seem reasonable to me. Be sure to allow for variations in depth of the EF throughout your area.

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### Author: ![KP\_Young](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/k/47e85d/32.png) [@KP\_Young](https://www.mineralrightsforum.com/u/KP_Young)
#### Post date: [December 29, 2016, 11:02pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/3 "2016-12-29T23:02:26Z")

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Thanks James. Do you happen to have any insights on realistic lease bonus/royalty rates in southern Zavala County? Have received two offers over the past couple of months that would appear to be pretty low ball.

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### Author: ![KP\_Young](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/k/47e85d/32.png) [@KP\_Young](https://www.mineralrightsforum.com/u/KP_Young)
#### Post date: [December 29, 2016, 11:03pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/4 "2016-12-29T23:03:12Z")

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Just for clarification, our place sits approximately 5 miles north of Crystal City, Texas.

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### Author: ![Robert\_V\_Gill](https://www.mineralrightsforum.com/letter_avatar_proxy/v4/letter/r/e8c25b/32.png) [@Robert\_V\_Gill](https://www.mineralrightsforum.com/u/Robert_V_Gill)
#### Post date: [December 29, 2016, 11:14pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/5 "2016-12-29T23:14:13Z")

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What you need is to include a Pugh Clause or what is sometimes called a Freestone Rider in your leases. Your lawyer should indicate in your leases at what levels the lessee is to work. And yes, the lease should be prepared by YOUR lawyer, not the oil company’s. If you accept their lease, you will be taken advantage of. Money spent on mineral lawyers is money well spent.

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [August 14, 2018, 10:42pm UTC](https://www.mineralrightsforum.com/t/depth-clause-clarrification/3670/6 "2018-08-14T22:42:04Z")

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