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.
North Dakota Extension of Primary Term of the Lease: In the context of leasing agreements in North Dakota, an extension of the primary term refers to a provision that allows a lease agreement to continue beyond its initial duration. This extension grants the lessee the right to occupy and use the leased property for an additional period of time, typically on mutually agreed upon terms. The primary term of a lease agreement in North Dakota refers to the initial period specified in the contract during which the lessee has the right to explore, develop, and produce minerals or resources on the leased premises. Upon the expiration of the primary term, the lease may terminate, or it can be extended through various mechanisms. There are different types of North Dakota Extension of Primary Term of the Lease: 1. Extension through Mutual Agreement: This type of extension occurs when both the lessor (landowner) and the lessee (oil company or individual) agree to extend the lease beyond its primary term. The terms of the extension, such as duration and rental rates, are negotiated and outlined in an addendum or an amendment to the original lease agreement. 2. Extension through Continuous Development: Some lease agreements include provisions that allow for an extension if the lessee engages in continuous development activities during the primary term. This means that the lessee must actively explore, drill, or produce minerals on the leased premises to maintain the lease in force. If the lessee meets the stipulated development requirements, the primary term may be extended. 3. Extension under Force Mature: In unique circumstances, such as acts of God, wars, or government regulations, lease agreements might include a force majeure clause. This clause permits the extension of the primary term if unforeseen events prevent the lessee from fulfilling their obligations within the agreed-upon timeframe. It is crucial for both lessors and lessees in North Dakota to thoroughly review their lease agreements to understand the provisions related to extensions of the primary term. Whether it is a mutually agreed extension, continuous development requirements, or force majeure, having a clear understanding of the extension provisions ensures compliance and helps avoid disputes or premature termination of leases.
