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.
The Iowa Reservation of a Call on, or Preferential Right to Purchase Production by Lessor is a legal provision commonly found in oil and gas leases. It grants the lessor (landowner) the right to either purchase or "call" a certain portion of the oil or gas production from the lessee (drilling company) before it is sold to any third party. This provision is implemented to protect the lessor's interests and ensure they have a fair opportunity to benefit from the production on their land. There are several types of Iowa Reservation of a Call on, or Preferential Right to Purchase Production by Lessor: 1. Single Party Reservation: This type of reservation gives the lessor the exclusive right to purchase the production. The lessee is prohibited from selling the production to any other party until the lessor has either exercised or waived their call right. 2. Shared Reservation: In this scenario, the lessor shares the preferential right to purchase the production with another party, such as a neighboring landowner or a co-lessee. The terms of the shared reservation are usually spelled out in the lease agreement. 3. Fractional Reservation: A fractional reservation grants the lessor the right to purchase a specific fraction or percentage of the production. For example, the lessor may reserve a 1/8th interest, meaning they can purchase 1/8th of the total production. 4. Dollar Amount Reservation: Instead of reserving a specific fraction or percentage, the lessor may reserve the right to purchase a certain dollar amount of the production. This allows the lessor to participate in the revenue generated by the lease, regardless of the overall production volume. 5. Time-Limited Reservation: Some reservations may have a time limit, meaning that the lessor's right to purchase the production expires after a certain period unless exercised. This allows the lessee to sell the production to third parties if the lessor does not exercise their call right within the specified time frame. Keywords: Iowa Reservation, call right, preferential right, purchase production, lessor, lessee, oil and gas lease, landowner, drilling company, single party reservation, shared reservation, fractional reservation, dollar amount reservation, time-limited reservation.
The Iowa Reservation of a Call on, or Preferential Right to Purchase Production by Lessor is a legal provision commonly found in oil and gas leases. It grants the lessor (landowner) the right to either purchase or "call" a certain portion of the oil or gas production from the lessee (drilling company) before it is sold to any third party. This provision is implemented to protect the lessor's interests and ensure they have a fair opportunity to benefit from the production on their land. There are several types of Iowa Reservation of a Call on, or Preferential Right to Purchase Production by Lessor: 1. Single Party Reservation: This type of reservation gives the lessor the exclusive right to purchase the production. The lessee is prohibited from selling the production to any other party until the lessor has either exercised or waived their call right. 2. Shared Reservation: In this scenario, the lessor shares the preferential right to purchase the production with another party, such as a neighboring landowner or a co-lessee. The terms of the shared reservation are usually spelled out in the lease agreement. 3. Fractional Reservation: A fractional reservation grants the lessor the right to purchase a specific fraction or percentage of the production. For example, the lessor may reserve a 1/8th interest, meaning they can purchase 1/8th of the total production. 4. Dollar Amount Reservation: Instead of reserving a specific fraction or percentage, the lessor may reserve the right to purchase a certain dollar amount of the production. This allows the lessor to participate in the revenue generated by the lease, regardless of the overall production volume. 5. Time-Limited Reservation: Some reservations may have a time limit, meaning that the lessor's right to purchase the production expires after a certain period unless exercised. This allows the lessee to sell the production to third parties if the lessor does not exercise their call right within the specified time frame. Keywords: Iowa Reservation, call right, preferential right, purchase production, lessor, lessee, oil and gas lease, landowner, drilling company, single party reservation, shared reservation, fractional reservation, dollar amount reservation, time-limited reservation.
