Oil and Gas Flash Cards
1
Q
Side A
A
Side B
2
Q
Floating Royalty
A
1/8 of Royalty
3
Q
Fixed Royalty
A
1/8 Royalty
4
Q
Five Mineral Interest Sticks
(Altmann v. Blake)
A
- Right to develop
- Right to lease (Executive Right)
- Right to delay rental
- Right to bonus
- Right to royalty
5
Q
Limitations to the Rule of Capture
A
- trespass
- negligence
- nuisance
- waste
- violating rules of a conservation agency
6.correlative rights
6
Q
Ownership in place
A
The mineral owner owns the oil and gas under his land
7
Q
Right to take theory
A
Owner has the eclusive right to take the oil and gas under his land.
8
Q
Mother Hubbard Clause
A
“The lease also covers adjacent or contiguous tracts owned or clained by Lessor.”
9
Q
Thereafter Clause
A
“as long thereafter as oil, gas or other minerals are being produced”
10
Q
What does production mean, in Texas?
A
Produced and marketed
11
Q
Savings clauses
A
Operate as a substitute for production
