Common use of OIL AND GAS RIGHTS Clause in Contracts

OIL AND GAS RIGHTS. Where there are state-owned natural gas storage rights and state-owned oil and gas rights under lease, the liquid hydrocarbons recovered and sold in association with underground natural gas storage operations shall continue to be subject to the provisions of the existing oil and gas lease(s). If the oil and gas rights are not under lease, an oil and gas lease will be negotiated either at the same time as the underground natural gas storage lease or prior to field development.