I have a lease with this clause underneath the tract description:
Notwithstanding any other provisions in this lease or any wording contained herein (such as "this lease", "the lease", "leasehold", or any other analogous terms), each of the separately designated tracts described above shall be treated for all purposes as a separate and distinct lease. All of the provisions contained in this lease form shall be applicable to each such tract and be construed as if a separate lease agreement had been made and executed covering each such tract.
The lease also has "Continuous Operations Clause" My question is will the continuous operations clause hold all lands covered under the lease or only on tracts that are being developed? Who does this benefit? As a Lessor the CO gives the lessee incentive to develop your interest and as a Lessee if gives you opportunity to hold the subject lease as long as you keep drilling, which lets you get maximum use of the leased premises if it is productive. Can anyone shine some light on this for me.