ACREAGE RELEASE Clause Samples
The Acreage Release clause defines the conditions under which a party, typically an oil and gas lessee, may relinquish all or part of the leased land back to the lessor before the lease term expires. In practice, this clause allows the lessee to formally notify the lessor of their intent to release specific acreage, often after determining that certain areas are not commercially viable for development. By enabling the lessee to reduce their obligations and associated costs, the clause ensures that unused or unproductive land can be made available for other potential lessees or uses, thereby promoting efficient land management and resource allocation.
ACREAGE RELEASE. 25 ---------------
9.1 Option to Release Acreage ..........................................................25 9.2
ACREAGE RELEASE. On or before the expiration of Option Period 2 as described in Section 3.2 above, McMoRan agrees to identify and release from this Agreement not less than forty percent (40%) of the balance of the Leases comprising the Contract Acreage as described on Exhibit "A" after deducting any Lease included in any Prospect drilled or committed to be drilled by McMoRan as provided herein and after taking into account the Leases and Contract Acreage released pursuant to Section 10.1 above and Sections 10.5 and 10.6 below. After release of this portion of the Contract Acreage, this Agreement shall only apply the remaining portion of the Contract Acreage and associated Leases not released.