Damage provisions in Lease Sample Clauses

Damage provisions in Lease. The language of the contractual provisions of the oil and gas lease must always be reviewed for any specific damage provisions or other limitations on the use of the surface of the property. The contractual provisions are controlling and dictate the mineral lessee’s rights and obligations. The granting clause of the oil and gas lease contains the required words of grant to create an interest in the lessee.54 A typical granting clause will set forth broad rights of the lessee to conduct exploration and development. The following clause is a typical granting clause taken from the Pound Printing & Stationery Company, Producers 88 (4/76) Revised Form: Lessor in consideration of Dollars ($ ), in hand paid, of the royalties herein provided, and of the agreements of Lessee herein contained, hereby grants, leases and lets exclusively unto Lessee for the purpose of investigating, exploring, prospecting, drilling and mining for and producing oil, gas and all other minerals, conducting exploration, geologic and geophysical surveys by seismograph, core test, gravity and magnetic methods, injecting gas, water and other fluids, and air into subsurface strata, laying pipe lines, building roads, tanks, power stations, telephone lines and other structures thereon and on, over and across lands owned or claimed by Lessor adjacent and contiguous thereto, to produce, save, take care of, treat, transport and own said products, and housing its employees, the following described land in County, Texas, to-wit:... Such broad language of the granting clause has been the industry’s attempt to describe all uses which may be likely made by the lessee. Case law cited herein further supports all reasonable uses necessary for the lessee to explore and produce the property.55