Area of Interest Provisions
It is common for mineral agreements, whether exploration agreements, options or long-term leases, to contain a provision pursuant to which property other than that specifically described in the agreement may be made subject to and included within the terms and conditions of the agreement. Clauses effectuating this purpose bear varying titles, including “area of interest,” “boundary protection,” “additional claims,” and “other property.” Clauses of a similar type are also found in oil and gas leases and are variously referred to as “cover-all,” “Mother Hubbard” and “all-inclusive” clauses.1 Whatever labels may be attached to clauses of this type, the general purpose of each is the same — to include lands in addition to those specifically described within the terms of the agreement.
The specific purposes of clauses of this type vary, depending on the party requesting the inclusion of the clause in the agreement and the nature of the property which is subject to the agreement. A landowner will often insist on a clause which provides that all property situated within a specified distance from the property he is leasing or optioning will be subject to the terms and conditions of the agreement, including any production royalty which may be payable. In such situations, the landowner is of the opinion that it is as a result of his efforts that the exploration company is in the
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