Looking at older leases. Does the following wording allow oil companies to make you pay for marketing, transportation and gathering?
It is agreed that this lease shall be for a term of three (3) years from the date hereof (herein called primary term") and so long thereafter as oil, gas, or either of them, is produced from said land by lessee.
In consideration of the premises the said lessee covenants and agrees:
1st. TO deliver to the credit of lessor free of cost, in the pipeline to which it may connect its wells, the one quarter (1/4) part of all oil (including but not limited to condensate and distillate) produced and saved from the leased premises.
2nd. TO pay lessor for gas of whatsoever nature or kind (with all of its constituents) produced and sold or used off the leased premises, or used the manufacture of products therefrom. one quarter (1/4) of the gross proceeds received, but in no event more than one quarter (1/4) of the actual amount received by the lessee. During any period (whether before or after expiration of the primary term hereon when gas is not being so sold or used and the well or wells are shut in and there is no current production of Oil or operations on said leased premises sufficient to keep this lease in force, lessee shall pay or tender a royalty One Dollar (SI .00) per year per net royalty acre retained hereunder, such payment or tender to be made, on or before the anniversary date of this lease next ensuing after the expiration of ninety (90) days from the date such well is shut in and thereafter on the anniversary date of this lease during the period such well is shut in, to the royalty owners. When such payment or tender is it will be considered that this lease is being produced within the meaning of the entire lease.
3rd. To pay for gas produced from any Oil well and used off the premises, or for the manufacture of any product sold or dry commercial gas one quarter (1/4) of the proceeds, at the mouth of the well, received for the gas during the time such gas shall be used. If lessee shall commence to drill a well or commence reworking operations on an existing well within the term of this lease or any extension thereof, or on acreage pooled therewith, the lessee shall have the right to drill such well to completion or complete reworking operations with reasonable diligence and dispatch, and if oil or gas, or either of them, be found in paying quantities, this lease shall continue in force with like effect as if such well had been completed within the term of years first mentioned. Lessee is hereby granted the right at any time and from time to time to unitize the leased premises or any portion or portions thereof, as to all strata or any stratum or strata or common source of supply, with any other lands as to all strata or any stratum or strata or common source of supply, for the production primarily of oil or primarily of gas with Or Without distillate. However, no unit for the production Of oil shall embrace more than 40 acres or for the production primarily of gas more than 640 acres, provided, that if the Oklahoma Corporation Commission or any govemmental regulation shall prescribe a spacing pattern for the development Of a field or a common source of supply, or allocate a producing allowable based on acreage per well, then any such unit may embrace as much additional acreage as may be so prescribed or as may be used in such allocation of allowable. Operations upon and production from the unit
shall be treated as if such operations were upon, or such production was from, the leased premises whether or not the well or wells are located thereon. In the event that all or a portion of the leased premises is committed to a unit, only the part of the acreage originally leased and then actually embraced by this lease shall be counted in the calculation of any shut in production from the unit. In respect to production from the unit, lessee shall pay lessor, in lieu of other royalties thereon, only such proportion of the royalties stipulated herein as the amount of lessor’s acreage placed in the unit, or his royalty interest therein, on an acreage basis lessor’s acreage bears to the total acreage in the unit. If said lessor owns a less interest in the above described land than the entire and undivided fee simple estate therein, then the royalties herein provided shall be paid to the lessor only in proportion which lessor’s interest bears to the whole and undivided fee.