North Carolina Freestone Rider

State:
Multi-State
Control #:
US-OG-842
Format:
Word; 
Rich Text
Instant download

Description

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.

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FAQ

The Pugh Clause has no ?standard language? and there are as many forms as there are drafters to the form. The clause will only have the effects that are specifically provided for in the language itself.

The point of a retained-acreage provision is to be able to seek a new opportunity to lease unworked land to a different lessee, one who might do something productive with it. A Pugh clause is a negotiated provision in favor of the lessor. Pugh clauses modify pooling/unitization rights.

A phrase (usually contained in a Pugh clause in an oil & gas lease) that terminates the lease after the primary term as to all formations below a particular depth typically defined as the stratigraphic equivalent of the base of the deepest producing formation in the unit.

?Many land professionals are confused about what is a vertical and what is a horizontal pugh clause. LEGALLY ? a vertical pugh clause is one where all acreage outside of the well/unit boundaries must be released. LEGALLY ? a horizontal pugh clause is one where you must release acreage below a certain depth.

Example of horizontal Pugh Clause A horizontal could offer a lease that spans certain acreage, including 30 acres across the property. This implies that a lessee would be able to access 30 acres of land across the drilled well, but no further.

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.

One of the mechanisms used to minimize this dilution effect is the Anti-Dilution Clause. This clause requires the gas operator to include either the entire tract or a certain percentage of the landowner's acreage in any production unit.

The Pugh Clause ? A clause in the Oil and Gas Lease which modifies usual pooling language to provide that drilling operations on or production from a pooled unit will not preserve the whole lease.

Interesting Questions

More info

... a few options are available (e.g., PDF or Word). Download the document. As soon as the Freestone Rider is downloaded you may fill out, print out and sign it in ... Lessors began to file lawsuits demanding release of these lands outside of the pooled unit or production unit once the primary term had expired.Sign up and sign in. Create a free account, set a strong password, and proceed with email verification to start working on your forms. Add a document. Click on ... It refers to a contract clause that allows a landowner to continue receiving royalties from oil and gas production even after the lease has expired. This clause ... A Practice Note discussing the Pugh clause, also referred to as a Freestone rider or retained acreage clause, found in many Texas oil & gas leases. We're passionate about trout. A precious natural resource, the abundantly trout-filled stream system in Cherokee connects 30 miles of freestone streams that ... Nov 4, 2015 — I'm possibly looking to relocate to one of the 3 states this spring (Arizona, Florida, Texas or North Carolina ). Which state/area do you feel ... Sep 4, 2020 — In North Carolina, a 'Contingent' listing is simply a listing that is under contract with a buyer. However, in the past, a contingent contract ... To fish here, you must have a Tribal Special Use Permit for catch-and-release. You can find a complete list of all fishing rules and regulations in the Code of ... Guided Fishing Trips in Western NC and East TN. Specializing in fishing for Trout, Smallmouth bass, and Striped bass. Casting and Fishing lessons for the ...

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North Carolina Freestone Rider