The following suggested changes to the CAPL 91 lease form should not be construed as legal advice. Every leasing situation is different and, because of the potential value of your mineral resources, you may wish to seek professional advice in all leasing situations.
The suggested changes have been cross-references to other areas of this web site where appropriate. For your convenience an addendum containing the recommended changes to the lease form is also attached.
Click here for a printable copy of the CAPL 91 Addendum. Addendums are available to members only - please log in. Click here for a printable copy of the CAPL 91 Lease.
GRANTING CLAUSE: Delete the words: “store” and " store and " from the final phrase of the clause and add “for these purposes” so that the final phrase in the granting clause now reads: “together with the exclusive right and privilege to explore for, drill for, operate for, produce, win, take, remove, treat and dispose of the leased substances and the right to inject substances into the said lands for the purpose of obtaining, maintaining or increasing production from the said lands, the pooled lands or the unitized lands and to recover any such substances injected into the said lands for these purposes.”
There is no provision in the lease providing any compensation to you in the event the oil company decides to use your lands for storage purposes. Clause 4(a) specifically states that no royalty shall be payable on non-leased substances injected and recovered from the lands. A lease agreement is supposedly for the mutual benefit of the owner-lessor and the oil company-lessee. If your oil company-lessee benefits from using your mineral interests for storage purposes, should you not share in this benefit?
Clause 1 – INTERPRETATION:
Sub-clause 1(c) – force majeure: Delete in its entirety and substitute: “force majeure” means an event or affect which can neither be anticipated nor controlled by the parties to this agreement and which, without limitation, includes acts of nature such as unusually severe storms, floods, and fires, and acts of people such as strikes, blockades, riots, wars and acts of public enemies;”
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