Common use of SURFACE LEASE Clause in Contracts

SURFACE LEASE. If the Landowner is part of a production unit and thereby is to receive production royalties, the Landowner grants to the Lessee the right to lease that portion of the Surface of the Property as is required for the Lessee's production and/or transmission facilities at a surface lease rate of $600/acre per year for productive crop land, $300/acre per year for pasture land and $150/acre per year for hillside or otherwise non-productive land. If the landowner not part of the production unit and therefore will not receive production royalties, but the lease is in good standing as to the rental payments and work commitments, then the Landowner grants the Lessee the right to lease that portion of the Surface of the Property as may be required for the Lessee's production and/or transmission facilities at surface lease rate of $1200/acre for productive crop land, $600/acre for pasture land and $300/acre for hillside or otherwise non-productive land. The location of such surface facilities and surface leases will be determined in consultation with the Landowner.