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 Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor
Category:
State:
Multi-State
Control #:
US-OG-820
Format:
Word;
Rich Text
Instant download
Description
How to fill out Reservation Of A Call On, Or Preferential Right To Purchase Production By Lessor?
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FAQ
Unlike a right of first offer (ROFO) or a right of first negotiation (ROFN), a ROFR requires a seller to actually offer the exact deal requested by an interested third party buyer to the holder of the ROFR ? a very powerful option to have in M&A scenarios.
In a ROFR agreement, neither party has an obligation to buy or sell anything. The seller simply has to give the other party the option to be the buyer. Right of first refusal agreements can come in a variety of forms. Some have a time limit, while others are indefinite.
Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, ing to specified terms, before the owner is entitled to enter into that transaction with a third party.
A right of first refusal is a clause used in contracts that allows one party the first opportunity to make an offer on a property. It is basically ?first dibs? in legal form.
1. n. [Oil and Gas Business] The right that nonselling participating parties have in a lease, well or unit to proportionately acquire the interest that a participating party proposes to sell to a third party.
