, LexisNexis(R) Forms FORM 727-77.203

Summary

[Basic provision]

Subject to the other provisions of this agreement, this lease shall be for a term of years from this date (“the primary term”), and as long thereafter as oil or gas of whatsoever nature is produced from the land.

[Primary term without limitation]

Notwithstanding any provisions of this lease, whether express or implied, and without reference to the commencement, prosecution, or cessation at any time of exploration, drilling, or production operations, this lease shall be for a term of years and as long afterward as oil or gas of any nature is produced from the land.

[Express requirement of paying quantities]

Subject to the other provisions of this agreement, this lease shall be for a term of years from this date (“the primary term”), and as long afterward as oil, gas, or other hydrocarbon substances are produced from the land [either in paying quantities; provided, however, the term “in paying quantities” as used in this provision shall mean in sufficient quantities each year as will be sufficient to pay the royalties reserved in this lease, reimburse Lessee for normal annual operating costs on the land for the year, and reimburse Lessee for drilling and equipment costs expended on wells drilled on the land over a period not exceeding (number) years after each well is completed or in sufficient quantities each year as will return a profit to lessee over and above operating, but not drilling or equipment costs in producing the oil or gas or in sufficient quantities each year as will produce both a net profit to Lessee over and above operating costs in the land for the year and royalties to Lessor in excess of the real property taxes levied or assessed on the land for the year].

[Alternative requiring specified production for oil]

Subject to the other provisions of this agreement, this lease shall be for a term of years from this date (“the primary term”), and as long thereafter as oil, gas, or other hydrocarbon substances are produced from the land in paying quantities; provided, however, the term “in paying quantities” as used in this provision shall mean, as to oil, a well from which there may be pumped for a period of consecutive days a quantity which shall average barrels (each containing 42 gallons) per day.

[Other general variations on secondary term]

Subject to the other provisions of this agreement, this lease shall be for a term of years from this date (“the primary term”), and as long thereafter [either as oil or gas is or can be produced or as oil or gas is produced from the land or the premises are being developed or operated or as oil or gas is produced from the land or land with which the land is pooled under this lease or as oil or gas is produced from the land by Lessee, or drilling operations are continued, as provided in this lease or as oil or gas is produced from the land or as long thereafter as Lessee shall conduct drilling or reworking operations on the leased premises with no cessation of more than consecutive days until production results, and if production results, for so long thereafter as oil or gas is produced].