4.003 Uncancelled Oil and Gas Lease
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Uncancelled Oil and Gas Lease
Prior Uncancelled Oil and Gas Lease: By instrument dated September 14, 1969, and recorded in Real Property Book 1969, page 151, Sam Houston granted an oil, gas, and mineral lease to Guadalupe Production, Inc., covering an interest in the mineral estate underlying Tract 1. By assignment dated September 28, 1969, Guadalupe Production, Inc., transferred its interest in the lease to Brazos Oil and Gas, Inc. In that conveyance, Guadalupe Production, Inc., reserved to itself two and one-half percent of the oil, gas, and minerals produced and saved from the leased premises.
The habendum clause of the lease provided that the Grantee should have and hold the property on the following conditions: (1) If a well was not commenced on Tract 1 or lands pooled therewith and prosecuted with due diligence within two years, the grant was to become null and void, provided that the Grantee could prevent such forfeiture by payment of rentals for up to five years; and (2) If oil or gas was discovered, the grant was to be in force for twenty-five years from the date of discovery and “as much longer” as oil, gas, or other minerals were produced in paying quantities.
Requirement: Furnish proof that no well was drilled between January 1, 1969, and December 31, 1974, on Tract 1 or on lands pooled with Tract 1 prior to December 31, 1974. Alternatively, accept the risk that the September 14, 1969, oil, gas, and mineral lease from Sam Houston to Guadalupe Production, Inc., as recorded in Real Property Book 1969, page 151, covers Tract 1 to the exclusion of your lease.
Copyright 2011 by Edward G, Hawkins. All rights reserved.