DUTY TO PREVENT DRAINAGE Sample Clauses

DUTY TO PREVENT DRAINAGE. Lessee will obtain a Railroad Commission Rule 37 or Rule 38 exemption to prevent drainage of the Leased Premises, and has an affirmative duty to drill an offset well to protect the Leased Premises against drainage as would a reasonably prudent operator under the same or similar circumstances. Without limiting the distance within which a well will be considered as drainage from the Leased Premises, Xxxxxx expressly agrees that any well located within one thousand (1,000) feet of the Leased Premises will be presumed to be draining the Leased Premises. Lessee may rebut this presumption only with evidence acceptable to Xxxxxx, and conclusions concerning will be made by Xxxxxx in Xxxxxx’s sole and exclusive discretion. In the event a well is draining, or presumed to be draining, the Leased Premises, Lessor may, at its option and in its sole discretion, require Lessee to do one of the following: (i) commence Drilling Operations within sixty (60) days after commencement of production from the draining well and continue such Drilling Operations with due diligence and in a prudent manner with no cessation of Drilling Operations of more than thirty (30) days, (ii) release the Lease as to that portion of the Leased Premises lying adjacent to such draining well (such portion to be (a) as nearly as practical in the form of a square,
Sample 1
DUTY TO PREVENT DRAINAGE. Lessee will obtain a Railroad Commission Rule 37 or Rule 38 exemption to prevent drainage of the Leased Premises, and has an affirmative duty to drill an offset well to protect the Leased Premises against drainage as would a reasonably prudent operator under the same or similar circumstances. Without limiting the distance within which a well will be considered as drainage from the Leased Premises, Lessee expressly agrees that any well located within one thousand (1,000) feet of the Leased Premises will be presumed to be draining the Leased Premises. Lessee may rebut this presumption only with evidence acceptable to Lessor, and conclusions concerning will be made by Lessor in Lessor’s sole and exclusive discretion.
Sample 1

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