Oil & Gas Law Final Exam

Study online at quizlet.com/_2rl3iu

1. The AAPL Model Form Operating Agreement originated in 1956, but has been updated more There has been more than one
than once since then. Why has there been more than one version of this document? because of time, technology and
not one could satisfy every
situation.
2. Among other things in Article IV: Titles of the 1989 version of the Model Form Operating True
Agreement covers loss or failure of title, and the title examination. It is understood that no
well will be drilled prior to the title being examined. True or False.
3. Article VII Part B of the 1989 version of the AAPL Model Form Operating Agreement covers A lien agreement is filed in a
Liens and Security Interests. Each party grants to the other a lien. Where is the lien agreement County Clerks office, i.e. it is public
most commonly filed of record? record
4. Article VI Part A of the 1989 AAPL Model Form Operating Agreement addresses the drilling True
and development of the initial well. Under Article VI Part A of this version of the JOA all
parties to the JOA must participate in the drilling. True or False.
5. Before a Pooling Order can issue there are four prerequisites that were mentioned during the 1. Attempted Agreement
September 23 lecture. Name all four. 2. Spacing Order
3. Forced Pooling Hearing
4. Notice (due process)
6. Briefly tell what is contained in Article III: Interests of Parties of the 1989 version of the Model 1. Share of interest and production
Form Operating Agreement. 2. Other inclusive
interest/subsequent created
interest
7. The Clean Water Act (CWA) gives the Federal government enforcement powers to protect the True
"Waters of the US", which includes surface waters only. True or False.
8. a contract between the working interest and the leasehold interest in the joint development of What is a Joint Operating
the contract area of land. The ...assigns an operator and sets up conditions on how the drilling, Agreement (JOA)?
completing, reworking and production of the contract area will be done.
9. The covenant to reasonably develop the leased premises is not implied in an oil and gas False
lease. True or False.
10. Covered on November 18th Quiz 13
11. Define and discuss a Farmout Agreement. Include in your
discussion the benefits for the Farmor and Farmee.
12. During the 10/7/2014 lecture on Oil and Gas Contracts the IADC
drilling contract was discussed and three types of a drilling
contract were mentioned. Name all three.
13. During the 10/7/2014 lecture Support Agreement/Contribution
Agreements were discussed. Three common Support
Agreements were mentioned. N
14. During the 10/14/14 class period a partial copy of the 1989
version of the AAPL Model Form Operating Agreement was
handed out. While this may be the most commonly used
versions of the JOA, it is not the only Operating Agreement
recognized by the oil and gas industry. True or False.
15. During the 10/21/14 lecture Article V Part B of the 1989 AAPL
Model Form Operating Agreement discusses the removal of the
Operator. Under this part of the JOA the Operator can be
removed for good cause if one (or more) of four transgressions
is committed by the Operator. Name all four of the
transgressions mentioned in the lecture.
16. During the 10/21/14 lecture Article V Part B of the 1989 AAPL
Model Form Operating Agreement, Resignation of Operator,
was discussed. Under this part of the JOA the Operator is
deemed to have resigned without any action by the Non-
operators if one of four criterion is met. Name the four criterion
mentioned in the lecture.
17. During the August 19, 2014 lecture the rectangular survey
system was discussed. Answer the following.
How many acres in a Section?
18. During the August 19, 2014 lecture the rectangular survey
system was discussed. Answer the following.
How many Sections in a Township?
A farmout agreement is a contract of the oil and gas lease rights
of certain acreage when drilling obligatoins have been
performed and the conditions and covenants are satisfied. A
Farmout agreement occurs when a Lessee (Farmor) is unwilling or
does not want to drill on the leased land and a Farmee wants to
and is willing to drill on the leased land.
The benefits of the Farmor include: geological and engineering
data of the offset well, the well satisfies underlying clauses of the
oil and gas lease, the well extends the life of the lease, and the
Farmor can get a share of production without having to pay for
any of the drilling, completion, or equipment cost.
The benefits of the Farmee is acquiring leased land that they
would not have gotten a lease to and not paying initial leasehold
agreements.
1. Daywork
2. Turnkey
3. Footage
1. Bottom hole Agreement
2. Dry hole Agreement
3. Acreage contribution
True
1. Gross Negligence.
2. Willful Misconduct
3. Material breach or inability to meet the standard of operation
in Article VA
4. Material failure of or inability to perform its obligations under
the agreement.
1. Terminates its legal existence
2. No longer owns an interest hereunder the contract area
3. No longer capable of serving as operator.
4. Become insolvent, bankrupt, or placed is in receivership
640 acres
36 sections
19. "Farmout acreage is earned and the leasehold interest assigned when the Test Well is Produce to Earn
drilled, completed and produces in paying quantities (or is capable of producing in
paying quantities) from the target formation".

The above is a condition for the assignment of interst earned by the Farmee under a
Farmout Agreement and is known as _______.
20. Five common examples of conservation laws were mentioned during the 9/2/2014 1. Spacing
lecture. Name FOUR of them. 2. Density
3. Location
4. Production allowables
(5.) Unitization for enhanced recovery
21. The following langauge found in an Oil and Gas Lease is a clause generally referred to After-Acquired Title
as what?

"This lease covers not only as such interest in the leased premises as the lessor
presently owns therein but also such additional interest as he may acquire in the
future by operation of the law or otherwise, and there shall be no increase in rental in
order to maintain this lease in force without drilling during its primary term in the
event of the acquisition by said party of such additional interest."
22. The following language found in an Oil and Gas Lease is a clause generally referred to A Mother Hubbard Clause.
as what?

"Notwithstanding any particular description, it is nevertheless the intention of lessor

to include within this lease, and he does hereby lease, not only the land so described
but also any and all other land owned or claimed by lessor in lands adjacent or
contiguous to the lands specifically described".
23. The following types of ownership interests were mentioned during the September 9, Has the right to the produced resources
2014 lecture. Discuss each of the following: Leasehold Interest and Working Interest and revenue and has to pay the operator
cost.
Lessee.
24. The following types of ownership interests were mentioned during the September 9, Has the right to a portion of the produced
2014 lecture. Discuss each of the following: Overriding Royalty Interest resources or revenue that is carved out of
the Working Interest. They do not pay any
of the drilling or completion costs. Pays
share of post production costs.
25. The following types of ownership interests were mentioned during the September 9, A person or company who does not have
2014 lecture. Discuss each of the following: Royalty Interest to pay operator cost but still gets a
portion of the revenue.
Lessor.
Incident of mineral ownership.
26. Give a brief definition for a written Gas Balancing Agreement, such as the 1992 AAPL -all of the acreage and depths subject to
Form 610E Gas Balancing Agreement. Your answer should include what the document the Operating Agreement
is and what it is for.
Balancing Area
27. Give a brief definition for a written Gas Balancing Agreement, such as the 1992 AAPL Shall mean one thousand cubic feet. A
Form 610E Gas Balancing Agreement. Your answer should include what the document cubic foot of Gas shall mean the volume
is and what it is for. of gas contained in one cubic foot of
space at a standard pressure base and at
MCF a standard temperature base
28. Give a brief definition for a written Gas
Balancing Agreement, such as the 1992 AAPL
Form 610E Gas Balancing Agreement. Your
answer should include what the document is and
what it is for.
Shall mean one million British Thermal Units. A British Thermal Unit shall mean
the quantity of heat required to raise one avoirdupois (a system of weights
based on a pound of 16 ounces) of pure water from 58.5 degrees F to 59.5
degrees Fahrenheit at a constant pressure of 14.73 pounds per square inch
absolute.

MMBTU
29. Give a brief definition for a written Gas Shall mean the deficiency between the cumulative quantity of Gas taken by a
Balancing Agreement, such as the 1992 AAPL Party and its Percentage Interest in the cumulative quantity of all Gas produced
Form 610E Gas Balancing Agreement. Your from the Balancing Area.
answer should include what the document is and
what it is for.

Underproduction
30. Give a brief definition for the following terms Authority of expenditure that is set up by the parties for the purpose of
found in Article I of the 1989 version of the AAPL estimating the cost of operations.
Model Form Operating Agreement.

AFE
31. Give a brief definition for the following terms All of the land described in the Oil and Gas Lease and/or oil and gas interest.
found in Article I of the 1989 version of the AAPL
Model Form Operating Agreement.

Contract Area
32. Give a brief definition for the following terms The party who decides to participate in the share of operations and the payment
found in Article I of the 1989 version of the AAPL of operations.
Model Form Operating Agreement.

"Drilling Party"/"Consenting Party"

33. Give a brief definition for the following terms The party who elects to not participate in operations.
found in Article I of the 1989 version of the AAPL
Model Form Operating Agreement.

"Non-Drilling Party"/"Non-Consenting Party"

34. Give a brief explanation of "Balancing in Kind", Underproduced owner takes a percentage share of the overproduced owner's
as said term is used in the 1992 AAPL Form 610E gas until the production imbalance is made-up (balanced).
Gas Balancing Agreement. -industry and judicial preference
35. The Habendum Clause is the clause in an Oil and False
Gas Lease that allows the lessor to acquire
additional interests in the leased premises after
execution of the lease. True or False.
36. How is "Hazardous Waste" defined by RCRA as discussed in the text. Hazardous Waste is a solid waste, which because of its
quantity, concentration, or physical, chemical or infectious
characteristics may -(A) cause or significantly contribute
to an increase in mortality, or an increase in serious
irreversible, or incapacitating reversible, illness; or (B)
pose a substantial present or potential hazard to human
health or the environment when improperly treated,
stored, transported or disposed of or otherwise managed.
37. How many tracts are described in each of the following legal 1
descriptions?

The SE/4 of the NW/4 of the SW/4 of the NE/4 of Section 10/
38. How many tracts are described in each of the following legal 2
descriptions?

The SW/4 of the SE/4 and the SW/4 of Section 8.

39. Identify the correction sections in each township. 1-6, 7, 18 ,19, 30, 31
40. Identify the following clause in an oil and gas lease. A Continuous Operations Clause.

"If lessee shall commence operations for drilling...at any time while this
lease is in force, this lease shall remain in force and its term shall
continue so long as such operations are prosecuted whether on the
same or different wells with no cessation in said operations of more
than 90 days and if production results therefrom, then as long as
production continues."
41. Identify the following clause in an oil and gas lease. A Continuous Drilling Clause.

"If lessee shall commence to drill a well or commence reworking

operations on an existing well within the primary term of this lease or
any extension thereof, or on acreage pooled therewith, the lessee
shall have the right to drill such a well to completion or complete
reworking operations with reasonable diligence and dispatch, and if oil
or gas, or either of them be found in paying quantities, the lease shall
continue and be in force with like effect as if such well had been
completed within the term of years first mentioned."
42. Identify the following clause in an oil and gas lease. A Vertical Pugh Clause

"Notwithstanding any wording herein contained to the contrary, it is

understood and agreed if any portion of the leased premises is pooled
with other lands or included in a governmental unit or unit formed
under this lease, production will maintain only the lands so pooled or
included in a unit, and this lease shall automatically terminate as to the
remainder of the leased premises not pooled or included in the unit."
43. Identify the following clause in an oil and gas lease. A Dry Hole Clause

"Should the first well drilled...be a dry hole, then and in that event if a
second well is not commenced...within 12 months from the expiration of
the last rental period for which rental has been paid, this lease shall
terminate unless lessee on or before the expiration of 12 months shall
resume the payment of rentals in the same manner as herein above
provided."
44. Identify the following clauses in an oil and gas lease. A Shut in
Gas Well
"During any period (whether before or after expiration of the Primary Term) when gas is not being sold, used, or Royalty
taken in kind, and the well (or wells) capable of producing gas ini paying quantities is shut in and there is no current Clause
production of oil on the leased premises sufficient to keep this lease in force, lessee may pay or tender to lessor a
royalty of Two Dollars ($2.00) per year per net mineral acre retained hereunder, such payment or tender to be made,
on or before the anniversary date of this lease nexxt ensuing after the expiration of ninety (90) days from the date
such well is shut in and thereafter on the anniversary date of this lease during the period such well is shut in. When
such payment or tender is made it will be considered that gas is being produced within the meaning of this lease."
45. Identify the following clauses in an oil and gas lease. A
Cessation
"If production from the above described land or acreage pooled therewith, ceases from any cause after the of
expiration of the primary term, this lease shall not terminate provided lessee succeeds in (1) Bringing back such Production
production within 90 days from such cessation, or (2) within such 90 day period commences drilling thereof with due Clause.
diligence to completion, and if such production is restored through any such operations, this lease shall continue..."
46. Identify the three questions to be asked when defining the grant from the lessor to the lessee in an Oil and Gas 1. What
Lease. rights and
uses are
covered in
this grant?
2. What is
the land
described
in this
grant?
3. What
does the
subsurface
cover in
this grant?
47. In a Gas Balancing Agreement a "Non-selling [Non-marketing] Owner" is defined as a 1. Owner's interest is not subject to a
Working Interest owner which is not taking [or selling] gas. The text mentions three (3) gas purchase contract.
reasons why a Non-selling / Non-marketing Owner might not be taking its share of gas. (No purchase contract)
Name those three reasons.
2. Owner is subject to a gas purchase
contract but the gas purchaser is
unable to take gas because of
equipment or pressure problems.
(Purchaser unable to take gas)

3. Owner has elected not to sell its

percentage share of gas.
(Owner has elected not to sell)
48. In Article IV: Titles of the 1989 version of the Model Form Operating Agreement all If a party knows of a defect in the title
parties to the agreement are responsible for providing curative. What does this mean. they are responsible to make the title
marketable.
49. In the discussion of horizontal severance of minerals, three ways to create a lesser 1. By footage/depth
interest in the mineral estate were mentioned. Name all three. 2. By horizon or formation
3. By stratigraphic equivalent
50. A majority of states do NOT require consideration to make an Oil and Gas Lease binding True.
upon the parties. True or False
51. The majority position is that when a cotenancy is created in the Mineral Estate, all the True
owners have the same and independent rights to the Mineral Estate. True or False.
52. Name the two purposes of the Resource Conservation and Recovery Act (RCRA) as 1. To prevent the release of hazardous
stated in the text. waste to the environment.

2. To provide a waste management

scheme for the handling and disposal
of solid and hazardous wastes.
53. Name three types of notice mentioned in the lecture. 1. Inquiry
2. Actual
3. Contructive
54. The Oil and Gas Industry benefits from the Exploration and Production Exemption in Exclusion means to exclude, i.e. not
RCRA and also benefits from the Petroleum Exclusion found in CERCLA. As used in the part of the categorization by the law
federal law discussed and in environmental law, what is the difference between an and therefore is excluded by the law.
"exclusion" and an "exemption?
Exemption is the same type of
substance covered by the law, but is
exempt by regulatory under RCRA
55. The Oil and Gas Lease known as a "Producers 88" is recognized as the standard lease. False
True or False.
56. An order issued by an administrative agency such as the Oklahoma Corporation Forced Pooling
Commission that sets forth the pooled lands and common source of supply and the
terms and conditions under which the pooled owners can elect to participate or not
participate in the drilling of the proposed well.

The definition above describes a ______ Order

57. The Permit Program of the Clean Air Act (CAA) issues permits that allow what? allows certain low level emissions ?
58. Please identify and describe three different rules that define what 1. Actual Production Rule- the physical extraction of oil or
"produced" or "production" mean under the provisions of the gas in paying quantities and the marketing of the oil or gas is
secondary term of the Habendum Clause. sufficient to keeping the lease of the secondary term.
Majority Position Texas.

2. Discovery Rule- Discovering oil or gas in paying quantities

is sufficient to keeping the lease of the secondary term.
Oklahoma and West Virginia.

3. Gas Discovery or Oil Production rule- the discovery of gas

in paying quantities or the extraction of oil and marketing of
the oil in paying quantities is sufficient to keeping the lease
of the secondary term.
59. The Primary Term in a lease is for a fixed term and that fixed term is False
usually 10 years. True or False
60. Prior to entering into a JOA, the parties must agree on certain items 1. Operator
to be designated in the Operating Agreement. Four of these items 2. Contract Area
are listed in the text and were discussed during the 10/14/14 lecture. 3. Target formation or depth
Name those four items. 4. The percent of interest to operators and nonoperators in
the K area.
61. Provide the rectangular survey land descriptions for the tract
marked A on the plat shown.

SE 1/4 of Section 32
62. Provide the rectangular survey land descriptions for the tract
marked B on the plat shown.

N1/2 of Section 32
63. Provide the rectangular survey land descriptions for the tract marked C on the plat
shown.

SW 1/4 of the SW1/4 of Section 32

64. A "Pugh" clause is a partial termination clause commonly associated with a process that Pooling
combines mineral acres to create a drilling and spacing unit. That process is known as a
____.
65. The purpose of the Safe Drinking Water Act (SWDA) is to protect what type of water? To protect groundwater from
underground injection and maintain
quality standards for drinking water.
66. QUIZ 1 -
67. Quiz 2 -
68. QUIZ 3 -
69. QUIZ 4 -
70. QUIZ 5 -
71. QUIZ 6 -
72. QUIZ 7 -
73. QUIZ 8 -
74. QUIZ 9 -
75. QUIZ 10 -
76. QUIZ 11 -
77. QUIZ 12 (last years) -
78. RCRA Subtitle C addresses the handling and disposal of Hazardous Waste, while RCRA True
Subtitle D addresses Solid Non-Hazardous Waste. True or False
79. Regarding subsurface trespass; when the trespass is discovered, a "good faith" trespasser True.
will usually be allowed to recover all reasonable drilling costs, completion costs, and the
cost of equipment. True or False.
80. "Regardless of whether there is a pooling lease, voluntary pooling agreement, or a State False
Statute allowing the right to pool, the Lessee always has the right to pool. True or False.
81. The September 23, 2014 lecture contained an explanation of the Two Part Test to First-Objective
determine whether a well is producing in paying quantities. The first test is the ______ test Second- Subjective
and the second is the _______ test.
82. Shall mean an act of God, strike, lockout, or other industrial disturbance, act of public Force Majeure as used in Article XI of
enemy, war, blockade, public riot, lightening, fire, storm, flood, or other act of nature, the 1989 version of the Model Form
explosion, governmental action, governmental delay, restraint or inaction, unavailability Operating Agreement.
of equipment, and any other cause, whether of the kind specifically enumerated above or
otherwise, which is not reasonable within the control of the party claiming suspension
83. A Shut-in Gas Well Royalty Clause found in an Oil and Gas Lease is True
designed to modify the Habendum Clause. However, before the Lessee
can take advantage of their rights under this clause in Oklahoma the well
must be capable of producing in paying quantities. True or False
84. "Simply moving dirt on a location constitutes commencement of drilling False
operations." True or False.
85. Six requirements for a valid instrument conveyance were discussed. Name 1. A writing
them. 2. Words of Grant
3. Adequate description
4. Grantor and Grantee
5. Proper Execution
6. Deliverance and Acceptance
86. States have differing statutes that govern the recordation of conveyances The first one to claim, also without notice someone
and other transfers of title. Briefly discuss these two- Notice Statute else was claiming, but has a valid claim.
(Majority)
87. States have differing statutes that govern the recordation of conveyances The first one to claim without notice that someone
and other transfers of title. Briefly discuss these two- Race Notice Statute else was also claiming.
(minority)
88. The surface estate is considered to be the "dominant estate," while the False.
mineral estate is considered to be the "subservient estate". True or False.
89. The SWDA created the Class II Underground Injection Control (UIC) Regulates injection and disposal wells. The program
Program? What is the Class II UIC Program and what does it regulate. must be accepted by the FDA and varies from state to
state. Must provide monthly volumes of injected
disposal substances via reports submitted annually.
90. The text mentions five general requirements for a contract. Name all five. 1. Offer and acceptance of the terms and agreements.
2. Two or more parties that have the capacity to
contract.
3. Legal statement matter.
4. Supported by consideration.
5. Writing required if the contract will not be fully
performed within a year or a transfer of interest.
91. The text mentions several areas covered by state rules and regulations 1. Plugging abandoned well bores
that address the states' environmental regulatory responsibilities. Name 2. Restoration of surface
four. 3. Underground injection control
4.Construction, maintenance and closure pits.
(5). Removal of trash, debris, and abandoned
equipment
(6). Handling, transportation, storage and disposal of
deleterious substances
(7) General prohibition against pollution
92. The text mentions three ways to calculate the price used for a cash 1. Fair Market Value
payment in two of the alternative Common Law methods of Gas Balancing 2. Weighted average price
without a Gas Balancing Agreement. Name the three ways to calculate the 3. Actual price received by overproduced owner
price used for cash payments.
93. "The Farmout acreage is earned and the leasehold interest assigned when Drill to Earn
the Test Well is drilled to the target depth and tests the target formation."

The above is a condition for the assignment of interest earned by the

Farmee under a Farmout Agreement and is known as ______.
94. There are three alternative Common Law methods of Gas Balancing 1. Balancing in kind
without a Gas Balancing Agreement. Name these three alternative 2. Interim or periodic cash balancing
methods. 3. Cash balancing at depletion.
95. True or False. Petroleum including crude oil or any fraction thereof and True, under "Petroleum Exclusion" from CERCLA.
natural gas are excluded from the term hazardous substance.
96. True or False. The Gas Balancing Agreement (like the AAPL Form 610E Gas False. The Gas Balancing Agreement can be made
Balancing Agreement) is not part of the Operating Agreement (JOA), but to be part of the JOA.
rather is always a separate agreement between the parties to the Operating
Agreement (JOA).
97. The two Meridian Lines found in Oklahoma were mentioned in the August 19, Indian and Cimarron
2014 lecture. Name both.
98. The two types of Drilling-Delay Rentals Clause mentioned are: 1. the OR type
2. the UNLESS type
99. Under Article VI Part B of the 1989 version of the Model Form Operating 30 days after noticed or 48 hours in certain
Agreement, Subsequent Operations, how long is the election period given to situations like a rig is on location.
a party deciding whether to participate in subsequent operations on a well?
100. Under Article V of the 1989 version of the AAPL Model Form Operating True
Agreement (JOA), the Operator has full control of all operations in the
Contract Area as delineated in the JOA. The above statement is: (true/false)
101. Under the 1989 version of the AAPL Model Form Operating Agreement non- False
operators do not have access to the contract area, but do have access to the
well records. True or False.
102. Under the Cessation of Production Clause the "Doctrine of Temporary The Doctrine of Temporary Cessation excuses a
Cessation" must be considered. Define and discuss the Doctrine of Temporary Lessee from producing oil or gas if some
Cessation. unforeseen circumstance like equipment failure or
a bad market occurs for a temporary period of
time.
103. Under the Clean Water Act, an owner or operator of an offshore facility, e.g., True
pit, tank, truck, is strictly liable for an unauthorized discharge of oil or
hazardous substances in harmful quantities from the facility to the waters of
the United States. True or False.
104. Under the Royalty Clause the Lessor/Royalty Interest (RI) pays almost no The ORRI is carved out of the working interest.
post-production costs, but the majority position is that an Overriding Royalty The post production paid by the Lessor/RI are
Interest (ORRI) does pay its share of post-production costs. Why would an commonly taxes, processing, and treatment,
ORRI have to pay post-production costs to be paid by the Lessor/RI. transportation, marketing, and sometimes
compression
105. Under the"Rule of Capture" as long as a mineral owner stays within their True
vertical boundaries, they are entitled to extract all the oil and gas from
beneath their land no matter where it migrates from, even if it is proven to
have migrated from the property of another. True or False.
106. The use of Correction Sections is one situation where lots are used in land 1. Meandaring Streams
descriptions. Name two others. 2. National Parks
107. The West Half Southeast Quarter, and the South Half of the Northwest Quarter 3
of Section 8.
108. What are five defenses the Lessee/Operator/Nonoperator can claim to the 1. Statute of limitations (wait to long to bring the
Landowner's claims for pollution caused by oil and gas operations? case)
2. Coming to the nuisance
3. Contributory negligence
4. Release and satisifaction
5. Causation
109. What are Seven claims a Landowner may have 1. Nuisance
against the Lessee/Operator/Nonoperator for 2. Negligence
pollution to his/her property caused by oil and 3. Trespass
gas operations? 4. Constructive fraud
5. Unjust enrichment
6. Breach of contract
7. Strict liability
110. What are seven forms of recoverable damages 1. Injury to real property
for pollution caused by oil and gas operations 2. Injury to personal property
3. Injury to the person
4. Lost rents or profits
5. Annoyance, inconvenience, discomfort and loss of enjoyment
6. Costs of investigation and remediation
7. Punitive (Punishment) damages
111. What are the two instruments of conveyance used 1. mineral deed
to sever the mineral estate from the surface 2. Warranty deed
estate?
112. What are the two types of negligence? 1. Public, one which affects at the same time an entire community or
neighborhood
2. Private, consists of unlawfully doing an act that annoys or injures others
113. What are three other relief may be available to 1.Injunction
the Landowner for pollution caused by oil and 2. Abatement
gas operations? 3. Attorney fees and cost
114. What does CERCLA stand for? Comprehensive Environmental Response, Compensation Liability Act
115. What is a "Top Lease". Discuss briefly. Top lease begins on a date certain or upon expiration of the existing OGL.

116. What is the purpose of CERCLA?
117. What is the purpose of the Comprehensive
Environmental Response, Compensation and
Liability Act (CERCLA)?
A top lease is when the lessor leases another person "ontop" of an already
existing lease. The lessee can assure themselves land by the warranty clause. It
is not appropriate for the top lease Lessee to offer the Lessor to terminate the
preexisting lease
To require the cleanup or remediation of sites where there has been a release
of hazardous substances or there exists a threatened release of hazardous
substances
To require the cleanup or remediation of sites where there has been a release
of hazardous substances or there exists threatened release of hazardous
substances.
118. When discussing Contract Law it is generally accepted that the distinction between conditions and covenants lies in the True.
appropriate remedy for their breach. Breach of a condition results in automatic termination of the leasehold estate upon
the happening of stipulated events. Breach of a covenant does not automatically terminate the estate, but instead subjects
the breaching party to liability for monetary damages, or in extraordinary circumstances, the remedy of a conditional
decree of cancellation. True or False.
119. When examining the Chain of Title; if a "Defect" is encountered it is not a big problem; however, any "Burden" on the False
property is a big issue. True or False