What is a standard shut-in clause? How does it start to pay - is it automatic or does the lessee have to notify the oil/gas company to get paid? Appreciate any helpful info.
Jett, There really is no standard shut in clause. My lease had a clause which my attorney and I felt was not friendly so we added a different clause, not a perfect clause but one in which the O & G company would agree. It really depends on what the wording is in your lease mine does say under what circumstances the Lessee (Oil & Gas Company) would pay me (Lessor) and how much but it does not talk about notification. Of course it should just be automatic. If you think you are owed money for shut in definitely reach out to the company or an attorney.
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