Hi. My sister and I have been offered a new Oil and Gas Lease on our share of property in the Bakken area of North Dakota. The offer is $300 bonus per acre, 3/16ths royalty and a three year lease, the terms of which I asked. I refused to do a two year option and they agreed to this. Our current lease expires in January 2010. The old lease and the new lease offered is the standard Producers 88 lease, but we have an Addendum added to it. We do have a Pugh clause in the old lease but I notice it doesn’t have “vertical and/or horizontal” mentioned in it. Does anyone have the teminology for adding this? Also, I don’t understand the terminology … “or force release of uphole or downhole of zones that are producing”. If you have any other suggestions on provisions we should add, it would be appreciated.
I don’t know what a “no surface use clause” is. Would love that explained to me.
Thanks so much.