Sorry to be a bother but does anyone know what a depth clause should say in just plain language? I'm not expecting a very detailed explanation unless someone wants to send it to me in an email but what are a few sentences that I should see in a clause such as that?
It is agreed and understood that this lease shall expire at the end of the primary term as to all
depths from one hundred (100) feet below the stratigraphic equivalent of the deepest
producing formation from any well drilled during the term of the lease or any extension
thereto or in any land that was spaced, unitized or pooled during the primary term.
Having the depth severance end at 100 feet below the base of the stratigraphic equivalent of the deepest producing formation is certainly problematic.
For an example, in Oklahoma the Granite Wash in places is 3,600 feet thick or more with 5 different and distinct pay zones. If the well was drilled in the top third of the GW, then all of the GW is held.
Better to make if 100 feet below the then producing perforations. No stratigraphic equivalent.
Michael Hutchison said:
It is agreed and understood that this lease shall expire at the end of the primary term as to all
depths from one hundred (100) feet below the stratigraphic equivalent of the deepest
producing formation from any well drilled during the term of the lease or any extension
thereto or in any land that was spaced, unitized or pooled during the primary term.
Good morning Buddy Cotton,
Hey, I like your explanation as it is short and to the point that I can understand.
Buddy Cotten said:
Having the depth severance end at 100 feet below the base of the stratigraphic equivalent of the deepest producing formation is certainly problematic.
For an example, in Oklahoma the Granite Wash in places is 3,600 feet thick or more with 5 different and distinct pay zones. If the well was drilled in the top third of the GW, then all of the GW is held.
Better to make if 100 feet below the then producing perforations. No stratigraphic equivalent.
Best,
Michael Hutchison said:It is agreed and understood that this lease shall expire at the end of the primary term as to all
depths from one hundred (100) feet below the stratigraphic equivalent of the deepest
producing formation from any well drilled during the term of the lease or any extension
thereto or in any land that was spaced, unitized or pooled during the primary term.