Savings clauses are the safety nets in most oil and gas leases that keep leases alive in after the primary term and in absence of production. These include continuous drilling, continuous operations, shut-in royalty, force majeure, retained acreage provisions, pooling, Pugh (rolling vs. snapshot), and depth severance clauses.
Many times, these clauses are an afterthought during the leasing phase of a project, but their importance shines years later when production inevitably stops. Therefore, it is important to understand what they mean and how they work. Join Land Manager and SME from PetroLegacy Energy discuss the clauses, real-world scenarios, and how you can prepare to save your lease in the future.