Part 2

Question 0

States the time period of the lessee’s interests. If we’ll is not begun in the specific amount of time, the lease expires.

Answer 0

Habendum clause

Question 1

Allows the lessee to include odd shaped or small wedges of land inadvertently left out or incorrectly described.

Answer 1

Mother Hubbard clause

Question 2

Is the profit free of expense except taxes and marketing expenses.

Answer 2

Royalty clause

Question 3

Authorizes lessee to cross-convey interests in oil and gas.(combine two or more leases to share interests)

Answer 3

Pooling and unitization clause

Question 4

Allows transfer of interests in the lease by either the lessor or the lessee or another party

Answer 4

Assignment clause

Question 5

Three largest U.S IOC

Answer 5

ExxonMobil, Chevron, and ConocoPhillips

Question 6

All companies must abide by the laws of the government, but no domestic company is given preferential treatment. 15% of world reserves.

Answer 6

Full access

Question 7

A NOC exists, but does not get preferential treatment over outside oil companies.(1% of world reserves)

Answer 7

Equity access

Question 8

The NOC is given priority access to reserves while outside oil companies. Access may be limited through minimum domestic ownership requirements. Shared production with the NOC or other methods. 37% of world reserves

Answer 8

Limited equity access

Question 9

The NOC has sole access to reserves. No foreign ownership of oil field is permitted in these countries, and any outside participation is limited to operation through a domestic affiliate. 47% of world reserves.

Answer 9

No equity access

Question 10

….. Is the practice of combining small tracts of land into a pool large enough to satisfy state spacing regulations for drilling

Answer 10

Pooling