What is a stand up clause in a lease? Help Please

Linda Redelfs · 2016-08-04T14:39:40Z

My father signed an oil and gas lease in 1981 covering 160 acres in Kingfisher County, Oklahoma. That lease is still in effect today since a well had been drilled on it. I have been trying to educate myself on how the leases and royalty payments are derived. My brother and I purchased all of my dad's royalty interest before he passed away. Since there is a lot of activity in our county now, I have gone to the courthouse and researched all of the leases, transfers, etc. On this particular lease it has a clause in it that states "This lease is a stand up 80 acre lease and shall be so treated by lessee and/or operator if production is obtained." Can anyone please explain to me what this clause means? Does it affect how the decimal interest is calculated on the royalty payments or is it something that just refers to the surface area on the property? Also, I should mention that I own the 160 acres of surface now as well as 1/2 of my father's mineral interest in the property.

General Mineral Rights Discussion