Chesapeake Lease - Post #1

Before I begin, just for the record, I will not alter the excerpts from this lease in any way. This is real text from a real document from Chesapeake Landman J. Powell. Cut & paste...and that's it.

For the record, part 2, there is no restrictive/prohibitive language on the lease, i.e. no "cannot be reproduced without the written permission of" or anything remotely similar. Too bad.

Here's the language regarding the term of the lease. I don't know why they even bother to mention "5 years", as the minute you cash any of their checks (more on that in a future post), you've essentially sold your soul.

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LEASE TERM. This Lease shall remain in force for a primary term of five (5) years from 12:00 A.M. ______________________________ (effective date) to 11:59 P.M. ______________________________ (last day of primary term) and shall continue beyond the primary term as to the entirety of the Leasehold if any of the following is satisfied:


(i) operations are conducted on the Leasehold or lands pooled/unitized therewith in search of oil, gas, or their constituents, or

(ii) a well deemed by the Lessee to be capable of production is located on the Leasehold or lands pooled/unitized therewith, or

(iii) oil or gas, or their constituents, are produced from the Leasehold or lands pooled/unitized therewith, or

(iv) the Leasehold or lands pooled/unitized therewith is used for the underground storage of gas, or for the protection of stored gas, or

(v) prescribed payments are made;

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