Form 26-4

An oil, gas, and mineral lease affects record title until the lease is properly released of record or it ter­minates according to its terms. One method of showing that a lease has terminated is to have a release executed by the lessee or the assignee of the lessee and filed in the real property records. If the lessee or assignee cannot be located, an affidavit of nonproduction is another means of demonstrating that a lease has expired. Provisions in oil, gas, and mineral leases typically specify events that terminate the lease. This affidavit evidences expiration of a lease because of nonproduction. It may be required by a purchaser before buying the property, by a lienholder making a loan with the property as collateral, or by a lessee. This affidavit can be modified if the termination is caused by other events specified in the lease.

Affidavit of Nonproduction

Date:

Oil and Gas Lease

Date:

Lessor:

Lessee:

Property:

Primary Term of the lease: [number] years

Owner:

[Buyer:]

[Lienholder:]

[Lessee:]

[Title Company:]

Owner on oath swears that the following statements are true and are within the personal knowledge of Owner:

Owner owns the Property. The Property was described in the Oil and Gas Lease.

No drilling operations were begun during the Primary Term. No oil, gas, or other min­eral was produced from the Property during the Primary Term or on any property with which the Property was pooled or unitized. No oil, gas, or other mineral is now being produced from the Property or on any property with which the Property is pooled or unitized.

Drilling operations were conducted during the Primary Term (or any extensions thereof provided by the Lease), but no oil, gas, or other mineral was produced from the Property or on any property with which the Property was pooled or unitized during the Primary Term (or any extensions thereof provided by the Lease). No oil, gas, or other mineral is now being produced from the Property or on any property with which the Property is pooled or unitized.

Drilling operations were conducted during the Primary Term. Oil, gas, or another min­eral was produced from the Property during the Primary Term (or any extensions thereof pro­vided by the Lease), but no oil, gas, or other mineral is now being produced from the Property or on any property with which the Property is pooled or unitized, nor has any delay rental or shut-in payment been timely paid to Lessor necessary to maintain the Lease currently in effect.

This affidavit is to establish of record that the Oil and Gas Lease has expired by its terms.

This affidavit is made for [Buyer to rely on in buying the Property/Lienholder to rely on in making a loan that is secured by a lien on the Property/Lessee to rely on in leasing the Property/Title Company to rely on in issuing title insurance with respect to the Property].

   
[Name of owner]

SUBSCRIBED AND SWORN TO before me on __________________ by [name of affiant].

   
Notary Public, State of Texas