Is there a set number of NMA that the MH clause applies to?
It is the intent of the Lessor to lease, and Lessor does hereby grant, demise, lease and let unto Lessee, all oil and gas, as defined herein owned by Lessor in Section 28 , Township 10 North, Range 07 West, _____ County, Oklahoma, whether or not properly and completely described herein. In the event it is determined that Lessor actually owns more net mineral acres than that assumed by the parties in the calculation of lease bonus and paid by Lessee, Lessor and Lessee agree that Lessee shall pay Lessor for such additional net acreage at the same bonus price per acre agreed upon for the execution of this oil and gas lease. Likewise, in the event it is determined that Lessor owns less net acres, or it is determined that Lessor’s acreage is currently leased under a prior oil and gas lease, then the Lessor agrees to reimburse Lessee for the bonus per acre paid for the acreage not owned by Lessor or under the prior oil and gas lease.
The Mother Hubbard clause is a “cover-all” clause named after the nursery rhyme of Mother Hubbard.
It is used when there may be some doubt as to actually how many net acres an owner owns in a tract and what the description might be if it differs slightly from the lease. They will pay you for what their title record search shows. If there are actually more, then they will pay you more. If they find out you own less, then you have to refund the difference. Leasing title searches are sometimes down more rapidly (or not done at all) than the very intense title search done for the Division Order. It applies to all of your net mineral acres in your section. Errors in description can occur as deeds are transferred through generations or sales. It is designed to catch everything that an owner actually owns.
Than you @M_Barnes but does it apply to more/less NMA that are only related to the legal description on the lease or does it apply to any NMA that are located in the same Section?
It depends upon how it is worded. In the one listed above, it appears that it may include all of the acreage in section 28. But that is only one clause and the lease as a whole would need to be read along with the description listed much higher in the lease. Leases typically describe the gross acres in a tract, not the net. If you have more in section 28 than described in the earlier description, then you need to get it clarified before you sign the lease. For example, if you have some acres in the NW corner and others in the SE corner, then you might want to have two identically worded leases except for the description of separate quarter sections and a restriction on the on the Mother Hubbard as to the particular quarter descriptions. Always good to consult with an oil and gas attorney as other clauses in the lease may not be in your favor and you need to get them fixed as well.