PROTECTION 01
Comprehensive Pugh Clause (Horizontal & Vertical)
Prevents an operator from tying up your entire 160-acre tract by pooling just 20 acres into a distant well unit. A vertical Pugh clause also frees deep untested formations 100 feet below the deepest producing perforation at the end of the primary term.
PROTECTION 02
Cost-Free Royalty / No Post-Production Deductions
Guarantees that your royalty check is calculated on gross proceeds at the point of sale. Without this clause, operators can legally subtract transportation, dehydration, compression, and marketing fees—slashing your net payment by 20% to 50%.
PROTECTION 03
Strict Shut-In Royalty Limits & Maximum Duration
Stops an operator from holding your lease indefinitely without drilling by paying a token $1.00/acre "shut-in" fee. Caps shut-in status to an aggregate maximum of two consecutive years, forcing development or release.
PROTECTION 04
Surface Damage Schedule & Water Protections
If you own the surface acreage, sets mandatory payment rates for well pads, access roads, and flowlines. Prohibits drillers from drawing fresh water from your private water wells, ponds, or creeks without separate commercial contracts.