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.
Delaware Pugh Clause: Explained and Types The Delaware Pugh Clause is a contractual provision frequently employed in oil and gas leasing agreements to address the issue of lease termination and the division of rights and obligations between the lessor and lessee. By including this clause, both parties involved can effectively handle the situations where the lessee wishes to release a portion of the leased land. In basic terms, the Delaware Pugh Clause establishes a condition wherein, if the lessee intends to surrender or release a particular portion of the leased premises, any undeveloped or non-producing mineral interests within that section will be deemed expired and revert to the lessor. This allows the lessor to potentially grant new leases to other parties or commence negotiations for the land in question. There are several types of Delaware Pugh Clauses. Some key ones include: 1. Horizontal Pugh Clause: This type applies when multiple separate and distinct formations are present within the leased premises. If the lessee releases a specific formation, the horizontal Pugh clause ensures the non-released formations remain active until their respective expiration dates. 2. Vertical Pugh Clause: This clause primarily deals with the release of specific depths or stratigraphic layers within the leased premises. By triggering the vertical Pugh clause, the lessee will forfeit the rights to untapped depths while the lessor retains ownership and control over those remaining. 3. Partial Pugh Clause: In instances where the leased premises have been subdivided into sections or units, the partial Pugh clause comes into effect upon lessee's surrender of these sections. As a result, the undeveloped or non-producing sections will return to the lessor's control while the others may remain in the lessee's possession. Overall, the Delaware Pugh Clause proves to be a vital provision in oil and gas lease agreements. Its inclusion ensures efficient land management, protects the interests of both lessor and lessee, and facilitates future exploration and development. By understanding the various types of Pugh Clauses, parties can tailor their agreements to reflect the specific needs and conditions of the leased premises.Delaware Pugh Clause: Explained and Types The Delaware Pugh Clause is a contractual provision frequently employed in oil and gas leasing agreements to address the issue of lease termination and the division of rights and obligations between the lessor and lessee. By including this clause, both parties involved can effectively handle the situations where the lessee wishes to release a portion of the leased land. In basic terms, the Delaware Pugh Clause establishes a condition wherein, if the lessee intends to surrender or release a particular portion of the leased premises, any undeveloped or non-producing mineral interests within that section will be deemed expired and revert to the lessor. This allows the lessor to potentially grant new leases to other parties or commence negotiations for the land in question. There are several types of Delaware Pugh Clauses. Some key ones include: 1. Horizontal Pugh Clause: This type applies when multiple separate and distinct formations are present within the leased premises. If the lessee releases a specific formation, the horizontal Pugh clause ensures the non-released formations remain active until their respective expiration dates. 2. Vertical Pugh Clause: This clause primarily deals with the release of specific depths or stratigraphic layers within the leased premises. By triggering the vertical Pugh clause, the lessee will forfeit the rights to untapped depths while the lessor retains ownership and control over those remaining. 3. Partial Pugh Clause: In instances where the leased premises have been subdivided into sections or units, the partial Pugh clause comes into effect upon lessee's surrender of these sections. As a result, the undeveloped or non-producing sections will return to the lessor's control while the others may remain in the lessee's possession. Overall, the Delaware Pugh Clause proves to be a vital provision in oil and gas lease agreements. Its inclusion ensures efficient land management, protects the interests of both lessor and lessee, and facilitates future exploration and development. By understanding the various types of Pugh Clauses, parties can tailor their agreements to reflect the specific needs and conditions of the leased premises.
