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.
Colorado Continuous Development, Retained Acreage, and Depth Limitations
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US-OG-785
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FAQ
Retained Acreage ? A clause that provides that a lease will continue after the expiration of the primary term as to a certain number of acres associated with each of the wells drilled under the lease. PUGH CLAUSE/RETAINED ACREAGE theenergylawgroup.com ? uploads ? 2020/12 ? P... theenergylawgroup.com ? uploads ? 2020/12 ? P...
Held-by-production clauses allow miners for oil, gas and minerals extend their land leases after they expire as long as the mines are still productive. Mining companies seek held-by-production clauses to lock in a lease price in potentially ?hot? areas of production.
A Pugh Clause is enforced to ensure that a lessee can be prevented from declaring all lands under an oil and gas lease as being held by production. This remains true even when production only takes place on a fraction of the property. Pugh Clause in Oil And Gas Lease: Definition and Types pheasantenergy.com ? pugh-clause pheasantenergy.com ? pugh-clause
An example of a Surface Area Pugh Clause: ?Production from or operations on a pooled unit or units including a portion or portions of the leased premises will maintain this Lease in force only as to the acreage included in the unit or units.