This lease rider form may be used when you are involved in a lease transaction, and have made the decision to utilize the form of Oil and Gas Lease presented to you by the Lessee, and you want to include additional provisions to that Lease form to address specific concerns you may have, or place limitations on the rights granted the Lessee in the “standard” lease form.
Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor is a legal provision that grants special rights and privileges to the lessor in an oil and gas lease agreement. This provision ensures that the lessor has the option to purchase any produced oil or gas from the leased property before it is sold on the open market. Keywords: Arizona Reservation, call on, preferential right, purchase production, lessor, oil and gas lease agreement, produced oil, produced gas, open market. There are primarily two types of Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor: 1. Reservation of a Call on Production: This type of reservation enables the lessor to directly call for the purchase of a portion of the produced oil or gas. The lessor can exercise this right by providing a notice to the lessee specifying the amount of oil or gas they wish to purchase. The lessee is obligated to sell the requested quantity to the lessor at market price. 2. Preferential Right to Purchase Production: Under this type of reservation, the lessor is provided with a preferential right to purchase any or all of the produced oil or gas before the lessee sells it to third parties. Once the lessee receives a bona fide offer from a third party, the lessee must notify the lessor of the offer and provide them with an opportunity to match the offer within a specified timeframe. If the lessor exercises their preferential right, the lessee must sell the production to the lessor instead. It is important to note that the specific terms and conditions of the Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor may vary depending on the provisions stated in the oil and gas lease agreement. The duration, notice period, pricing mechanism, and other relevant terms should be thoroughly discussed and agreed upon between the lessor and lessee to ensure a fair and transparent transaction. Overall, the Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor provides the lessor with a unique advantage in the oil and gas lease agreement, allowing them to potentially benefit from market fluctuations and secure a direct share of the produced resources.Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor is a legal provision that grants special rights and privileges to the lessor in an oil and gas lease agreement. This provision ensures that the lessor has the option to purchase any produced oil or gas from the leased property before it is sold on the open market. Keywords: Arizona Reservation, call on, preferential right, purchase production, lessor, oil and gas lease agreement, produced oil, produced gas, open market. There are primarily two types of Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor: 1. Reservation of a Call on Production: This type of reservation enables the lessor to directly call for the purchase of a portion of the produced oil or gas. The lessor can exercise this right by providing a notice to the lessee specifying the amount of oil or gas they wish to purchase. The lessee is obligated to sell the requested quantity to the lessor at market price. 2. Preferential Right to Purchase Production: Under this type of reservation, the lessor is provided with a preferential right to purchase any or all of the produced oil or gas before the lessee sells it to third parties. Once the lessee receives a bona fide offer from a third party, the lessee must notify the lessor of the offer and provide them with an opportunity to match the offer within a specified timeframe. If the lessor exercises their preferential right, the lessee must sell the production to the lessor instead. It is important to note that the specific terms and conditions of the Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor may vary depending on the provisions stated in the oil and gas lease agreement. The duration, notice period, pricing mechanism, and other relevant terms should be thoroughly discussed and agreed upon between the lessor and lessee to ensure a fair and transparent transaction. Overall, the Arizona Reservation of a Call on, or Preferential Right to Purchase Production by Lessor provides the lessor with a unique advantage in the oil and gas lease agreement, allowing them to potentially benefit from market fluctuations and secure a direct share of the produced resources.
