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Dick’s Dangerous Dozen – Plus NINE Landowner Unfriendly Terms in an Oil and Gas Lease

There are a number of words in oil and gas leases that may adversely affect a Landowner’s pocketbook or land.

We list many of those key words below with an indication of where these words might appear in an oil and gas lease.

  1. Standard Lease (“Landman talk”)
  2. Non-hydrocarbons (Granting clause)
  3. “Water” (Granting clause or anywhere in lease)
  4. Facilities/Structures/Buildings (Granting clause or anywhere in lease)
  5. Operations (Granting and/or Term clause)
  6. Disposal or Injection (Granting or separate clause)
  7. Gas Storage (Granting clause or anywhere in lease)
  8. “Neighboring lands” (Granting clause)
  9. Capable of Production (Term clause)
  10. “Other payments are made” (Term clause)
  11. Net Royalty (Royalty clause)
  12. Non-contiguous Land (Pooling clause)
  13. Pool Before or After Drilling/Reform/ Enlarge (Pooling clause)
  14. No Implied Covenants (Separate clause or hidden)
  15. Notice (Separate paragraph)
  16. “Commence” (Notice clause and anywhere)
  17. “Force Majeure” (Separate clause)
  18. “No Forfeiture or Termination” (Separate clause and anywhere)
  19. “Option” or “Renewal” (Separate paragraph or hidden)
  20. Arbitration (Separate paragraph)
  21. Payments suspended (Lien clause or hidden)