Starting off, this module covers the vertical and horizontal Pugh clauses and the retained acreage clause. Next it goes into detail about the savings clauses, including: the dry hole clause, the shut-in gas royalty clause, the continuous operations clause, the cessation of production clause, and the force majeure clause. It describes the warranty clause, subrogation clause, equipment removal clause, and the assignment clause. This module also examines surface use provisions and restrictions along with surface use agreements. Then, it explains the issues caused by variations in lease terms that are in the same tract or unit. Lastly, it covers community leases, seismic agreements with lease options, lease extension options, and top leasing.

Duration: Approximately 25 minutes, depending on user pace.

Learning Objectives: Upon successful completion of this module, you will be able to:

• Explain vertical and horizontal Pugh clauses
• List the “savings clauses” that can be used to ensure that a lease does not terminate prematurely
• Describe the Warranty, Subrogation, Equipment-Removal and Assignment clauses
• Discuss surface-use agreements and their purpose
• Summarize issues that can arise from having several leases with different terms in the same tract or unit

Prerequisites: Module 1-10

Advance Preparation: None

Program Level: Non-technical

Format: Prerecorded narrator with supporting visuals. User controls course pace.