Coalbed Methane Clause Samples

Coalbed Methane. To the extent that Lessor owns gas, coalbed methane or coal seam gas (collectively “coalbed methane”) within the Leased Premises, Lessee may remove, vent, flare or capture such coalbed methane from the coal strata being mined and any overlying formations if such removal is necessary for safety reasons in the reasonable discretion of Lessee. If Lessee captures or uses such coalbed methane, it shall pay Lessor royalties on the value of such coalbed methane at the prevailing state royalty rate for natural gas, unless such royalties are expressly waived by Lessor. Except as expressly granted herein, the right to extract gas, coalbed methane and coal seam gas is not granted by this Lease.

Coalbed Methane. The term “Coalbed Methane” means any gas, hydrocarbon, or gaseous substance which is, can be or has been produced from a coal seam, the rock or other strata in communication with a coal seam, a mined-out area or a gob well, but including within such term only such constituent minerals, gases and chemicals which are commonly recognized as of the date of this Agreement as being marketable as “coalbed methane.”

Coalbed Methane. All references in this lease to production of Minerals or ▇▇▇▇▇ capable of producing Minerals shall be satisfied by production of water from a well drilled to and completed in any coal bearing sand under the Leased Premises (a “CBM Well”) for a period of time up to thirty-six (36) months after commencement of the dewatering of any such well. The parties recognize that a CBM Well may require dewatering for an extended period of time prior to the actual production of gas or liquid hydrocarbons in significant quantities. Therefore, Lessee’s continued operations of a CBM Well for such purpose and production of water from such well for a period of time (not to exceed thirty-six(36) months, unless actual production of Minerals in paying quantities is established within such period), will be deemed to be production of Minerals in paying quantities during such period of time for all purposes of this Lease. EXECUTED on this the 20th day of August. 2007 LESSOR: ATRISCO OIL AND GAS, LLC By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ Name: ▇▇▇▇▇ ▇▇▇▇▇▇▇ Title: Chief Executive Officer LESSEE: TECTON ENERGY, LLC By: /s/▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Its: Managing Partner State of New Mexico County of Bernalillo This instrument was acknowledged before me on August 20, 2007 by ▇▇▇▇▇ ▇▇▇▇▇▇▇, CEO of Atrisco Oil and Gas, LLC, a New Mexico limited liability company, as the act and deed of said company. /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ Notary Public for the State of New Mexico ▇▇▇▇▇ ▇. ▇▇▇▇▇ Printed name of Notary My Commission Expires August 5, ▇▇▇▇ ▇▇▇▇▇ ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇ ▇▇▇▇▇▇ This instrument was acknowledged before me on August 22, 2007 by ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Managing Partner of Tecton Energy, LLC, a Texas limited liability company, on behalf said company. Notary Public for the State of Texas ▇▇▇▇▇ ▇▇▇▇▇ Printed name of Notary My Commission Expires February 24, 2010 Attached to and made a part of that certain Oil, Gas and Mineral Lease dated August 20, 2007, between Atrisco Oil and Gas, LLC (“Lessor”) and Tecton Energy, LLC (“Lessee”) The Legal Description of Leased Premises is as follows: This Lease shall include all land located within the Town of Atrisco Land Grant that is determined to be owned or claimed by Lessor, and being more specific in the Exhibit A in the Quitclaim Mineral Deed and Assignment of Oil and Gas Leases, dated December 4, 2006, from Westland Development Co., Inc. to Lessor, recorded in Book A128, Page 8482 in the Office of the County Clerk of Bernalillo County, New Mexico. It is...