This module gives a background of leasing. It explains where the term "Producer's 88" came from and why it is important to oil and gas leases. It goes over what a lease conveys and explains how a lease identifies the parties and the effective date. The lease is further explored with the granting section, which includes: consideration, words of grant, minerals and developments rights included, the property description, and the Mother Hubbard clause. It wraps-up with relating what the Habendum clause in an oil and gas lease is, including descriptions of the primary term, the secondary term, and paying quantities.

Duration: Approximately 24 minutes, depending on user pace.

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

• Recount the evolution of leasing forms and the common use of the term “Producer’s 88”
• List the key elements included in a granting clause
• Describe the Habendum clause and differentiate between the primary term and secondary terms of a lease
• Identify the duration of a lease under different scenarios
• Explain why a producing lease will expire if production falls below an economic level

Prerequisites: Module 1-6

Advance Preparation: None

Program Level: Non-technical

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