MULTI-STATE LEASE FORMS PROGRAM (NKF02)

In 2011, Kanes introduces its Multi-State Lease Forms Program.

The forms in this Program include forms of Oil and Gas Leases for the following states:

Alabama, New Mexico, California, New York, Colorado, North Dakota, Florida, Ohio, Illinois, Oklahoma Indiana, Pennyslvania, Kansas, Rocky Mountain, Kentucky, South Dakota,  Louisiana (North), Tennessee, Maryland, Texas, Michigan, Utah, Mississippi, Virginia, Montana, West Virginia, Nebraska, Wyoming

In addition, there are over 300 forms of Riders that may be added to a Lease.

The Lease forms are patterned after “Producers 88” style lease forms used in the specific states.

The Paid-Up and Rental form Lease for Alabama, Florida, Kansas, North Louisiana, Mississippi, New Mexico, Oklahoma, and Texas have additions/revisions which:

•    Improves the terms of the Lease from the Lessee’s perspective.

•    Clarifies the terms of the Lease.

•    Provides for an Effective Date.   You select the date to coincide with the date the Lease is actually signed and delivered.

•    Has a broad general granting clause.

•    Provides for the Lease to remain in effect after the end of the primary term if a dry hole was drilled during the primary term, to allow for additional operations and the Lease to be perpetuated.

•    Significantly changes the royalty provision for both oil and gas.  Royalty payments for both are based on proceeds.  On gas, the Leases specify the deductions allowed.  You specify the royalty reserved by the Lessor, eliminating the need to alter the Lease form or add an addendum to change the royalty amount.

•    Allows for oil or gas wells to be shut in and the Lease be perpetuated by shut in royalty payments.  Shut in royalty payments are payable at the end of the 12 month period after a well is shut in rather than 90 days after shut in.  Failure to pay shut in royalty does not cause the Lease to terminate, but only gives rise to an obligation to pay.

•    Expands the pooling provision to allow for larger units to be created for horizontal wells.  You specify the amount of acreage that may be included to a pooled unit for oil and gas.  The pooling provision allows for units to be formed, amended, or terminated at any time.

•    Expands the workover clause from 60 to 90 days and the notice period from 30 to 60 days.


INDEX AND SAMPLE FORMS IN THE MULTI-STATE LEASE FORMS PROGRAM

All samples are Adobe Acrobat™ formatted (PDF documents) and can be viewed with the free version of Adobe AcroReader™ most users already have a copy of on their computer.


About the Index of and Samples of forms in the Multi-State Lease Forms Program

1.    The forms are listed in the same order as they appear in the Program; divided into topical sections.

2.    There are no sample forms of Acknowledgments, but forms of Acknowledgments for all producing states are included in the Multi-State Lease Forms Program.

3.    To view a Sample, click on the form title listed.