Common use of Lease Security Clause in Contracts

Lease Security. Lessee shall take the degree of care and all proper safeguards a reasonably prudent operator would take to protect the Leased Premises and to prevent theft of all Materials produced from the Leased Premises. This includes, but is not limited to, the installation of all necessary equipment, seals, locks, or other appropriate protective devices at all access points to the Lessee’s production, gathering and storage systems where theft of said materials and/or minerals can occur. Unless Lessee takes reasonable precautions to prevent theft from occurring, Lessee shall be liable for the loss of any of said Materials resulting from theft and shall pay the Lessor royalties on all said Material thereon as provided in this Lease calculated to be lost by reason of theft.