Am in negotiations for lease in the Arnett, Hockley Co, TX (FM 1585) area and need the adendum language for protecting our irrigation pivot area.
D. Jones
Dear Mr. Jones,
Run this past your attorney and see if it works:
Lessee agrees that it will not in any manner alter or interfere with existing drainage of or on any portion of Lessor’s property. Further, Lessee understands that the leased premises and its crops are irrigated by means of an irrigation pivot and should oil or gas or either of them are discovered on the premises covered by the irrigation pivot, then the production facilities shall be lowered into a cellar so that the top of the production facilities are below the irrigation pivot.
I own several farms in Hockley County near Arnett, and have been negotiating a lease and addendum with concerns for both pivot irrigation systems and drip irrigation systems.
FYI, a "cellar" is not appropriate for this part of the country. Among other things, they'd be filled in with sand pretty quick. Instead, "low profile" pump jacks are utilized and at appropriate places a dirt ramp is built in line with the wheels of the pivot so as to pass over the pump jack. These are fairly commonplace.
For the Wolfberry wells that these guys are after, the HOPE is that there will not be a pump jack required, at least for a long, long time. However, since this lease could go on indefinitely, it is important to get it right and cover yourself for all things and all types of wells that might be drilled, both now and 50 years from now.
Here are some issues to consider, but as Buddy said, run them by your attorney. I have included the ONLY to give you things to think about.
1. Circular Irrigation. If a circular irrigation system or systems is located on the lease premises, Lessee and Lessor agree that Lessee shall locate the pump jacks, tank batteries or any other of its equipment, which are in the path of a circular irrigation system, if one is on the premises, at a level which will allow the irrigation system to pass over as if there were no equipment in the path of the irrigation system.
2. Drilling Operation. Notwithstanding anything herein to the contrary, Lessee is granted the right to erect drilling rigs, completion rigs, pulling units and other equipment and facilities on the lease premises which may be of a greater height than Lessor’s irrigation equipment during drilling and exploration operations and during the testing, completion and reworking of wells drilled hereunder, provided however, Lessee shall promptly remove such rigs and/or other facilities and equipment after cessation of such drilling, testing, completion and reworking operations on wells drilled hereunder.
The tenant farmer must be notified prior to setting up any equipment or facilities exceeding the height of Lessor's circular irrigation equipment.
Crop damages will be paid if any equipment or facilities exceed the height of Lessor's circular irrigation equipment and, as a result, interfere with irrigation of cropland during any irrigation cycle, whether growing crops or in preparation for planting crops.
If any equipment or facilities exceed the height of Lessor's circular irrigation equipment for a period of more than one week during irrigation operations, then Lessee will pay for circular irrigation modifications to enable automatic reversing.
3. DRILLING LOCATION. If at all possible, Lessee will always choose their drilling locations and tank battery locations on the corner of the leased property so that any drilling operations will not conflict with the farming operations and circular irrigation systems on the premises
Dear JW,
Good stuff, there. Thanks for joining in. We can't use cellars here either, but we do not use above ground irrigation, either.
Buddy Cotten said:
Dear Mr. Jones,
Run this past your attorney and see if it works:
Lessee agrees that it will not in any manner alter or interfere with existing drainage of or on any portion of Lessor’s property. Further, Lessee understands that the leased premises and its crops are irrigated by means of an irrigation pivot and should oil or gas or either of them are discovered on the premises covered by the irrigation pivot, then the production facilities shall be lowered into a cellar so that the top of the production facilities are below the irrigation pivot.
Best,
Buddy Cotten
Mineral Manager
Buddy Cotten;
Thank for the lease info.
D. Jones
Buddy Cotten said:
Dear Mr. Jones,
Run this past your attorney and see if it works:
Lessee agrees that it will not in any manner alter or interfere with existing drainage of or on any portion of Lessor’s property. Further, Lessee understands that the leased premises and its crops are irrigated by means of an irrigation pivot and should oil or gas or either of them are discovered on the premises covered by the irrigation pivot, then the production facilities shall be lowered into a cellar so that the top of the production facilities are below the irrigation pivot.
Best,
Buddy Cotten
Mineral Manager
J. W. Anderson;
Appreciate your hep
D. Jones
JW Anderson said:
I own several farms in Hockley County near Arnett, and have been negotiating a lease and addendum with concerns for both pivot irrigation systems and drip irrigation systems.
FYI, a "cellar" is not appropriate for this part of the country. Among other things, they'd be filled in with sand pretty quick. Instead, "low profile" pump jacks are utilized and at appropriate places a dirt ramp is built in line with the wheels of the pivot so as to pass over the pump jack. These are fairly commonplace.
For the Wolfberry wells that these guys are after, the HOPE is that there will not be a pump jack required, at least for a long, long time. However, since this lease could go on indefinitely, it is important to get it right and cover yourself for all things and all types of wells that might be drilled, both now and 50 years from now.
Here are some issues to consider, but as Buddy said, run them by your attorney. I have included the ONLY to give you things to think about.
1. Circular Irrigation. If a circular irrigation system or systems is located on the lease premises, Lessee and Lessor agree that Lessee shall locate the pump jacks, tank batteries or any other of its equipment, which are in the path of a circular irrigation system, if one is on the premises, at a level which will allow the irrigation system to pass over as if there were no equipment in the path of the irrigation system.
2. Drilling Operation. Notwithstanding anything herein to the contrary, Lessee is granted the right to erect drilling rigs, completion rigs, pulling units and other equipment and facilities on the lease premises which may be of a greater height than Lessor’s irrigation equipment during drilling and exploration operations and during the testing, completion and reworking of wells drilled hereunder, provided however, Lessee shall promptly remove such rigs and/or other facilities and equipment after cessation of such drilling, testing, completion and reworking operations on wells drilled hereunder.
The tenant farmer must be notified prior to setting up any equipment or facilities exceeding the height of Lessor's circular irrigation equipment.
Crop damages will be paid if any equipment or facilities exceed the height of Lessor's circular irrigation equipment and, as a result, interfere with irrigation of cropland during any irrigation cycle, whether growing crops or in preparation for planting crops.
If any equipment or facilities exceed the height of Lessor's circular irrigation equipment for a period of more than one week during irrigation operations, then Lessee will pay for circular irrigation modifications to enable automatic reversing.
3. DRILLING LOCATION. If at all possible, Lessee will always choose their drilling locations and tank battery locations on the corner of the leased property so that any drilling operations will not conflict with the farming operations and circular irrigation systems on the premises