12 06c OIL AND GAS LEASE (Paid-up Lease-No Delay Rentals)

• Jurisdiction: Arkansas
• Library: Arkansas Form Book - Complete (2023 Ed.)

12-06C OIL AND GAS LEASE (Paid-up Lease-No Delay Rentals)

OIL AND GAS LEASE

THIS AGREEMENT, made and entered into this [day] of [month, year], by and between [lessor name/s], whose mailing address[es] [is/are] [lessor address/es], hereinafter called Lessor (whether one or more), and [lessee name], hereinafter called Lessee:

WITNESSETH: That Lessor, for and in consideration of [Ten And More] Dollars ($10.00 & more) and other good and valuable consideration in hand paid, receipt of which is hereby acknowledged, and of the agreements of Lessee hereinafter set forth, hereby grants, demises, leases and lets exclusively unto the Lessee the lands hereinafter described for the purpose of prospecting, exploring by geophysical and other methods, drilling, mining, operating for and producing oil or gas, or both, including, but not as a limitation, casinghead gas, casinghead gasoline, gas-condensate (distillate) and any substance, whether similar or dissimilar, produced in a gaseous state, together with the right to construct and maintain pipe lines, telephone and electric lines, tanks, powers, ponds, roadways, plants, equipment, and structures thereon to produce, save and take care of such oil and gas, and the exclusive right to inject air, gas, water, brine and other fluids from any source into the subsurface strata and any and all other rights and privileges necessary, incident to, or convenient for the economical operation of the land, alone or conjointly with neighboring land, for the production, saving and taking care of oil and gas and the injection of air, gas, water, brine, and other fluids into the subsurface strata, such lands being situated in the county of [county], state of Arkansas, and being described as follows:

[LEGAL DESCRIPTION]

of [Section], [Township], [Range], it being the purpose and intent of Lessor to lease, and Lessor does hereby lease, all of the lands or interests in lands owned by Lessor which adjoin the lands above described or which lie in the section or sections herein specified whether or not herein completely and accurately described, together with and including any accretions thereto which may have formed, may now be forming or may hereafter form. For all purposes of this lease, such lands shall be deemed to contain [gross acres in lease] acres.

Subject to the other provisions herein contained, this lease shall remain in force for a term of [primary term] years from this date (herein called "primary term") and as long thereafter as oil and gas, or either of them, is produced from the above-described land or drilling operations are continuously prosecuted as hereinafter provided. "Drilling Operations" includes operations for the drilling of a new well, the reworking, deepening or plugging back of a well or hole or other operations conducted in an effort to obtain or re-establish production of oil or gas; and drilling operations shall be considered to be "continuously prosecuted" if not more than 120 days shall elapse between the completion or abandonment of one well or hole and the commencement of drilling operations on another well or hole. If, at the expiration of the primary term of this lease, oil or gas is not being produced from the above-described land but Lessee is then engaged in drilling operations, this lease shall continue in force so long as drilling operations are continuously prosecuted; and if production of oil or gas results from any such drilling operations, this lease shall continue in force so long as oil or...