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 Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor refers to a legal provision in oil and gas lease agreements that grants the lessor (the owner of the mineral rights) the ability to either purchase or take a share of the produced oil or gas before it is offered to third parties. This provision is often included to protect the lessor's interests and ensure they have the opportunity to partake in the benefits of the resource extraction. In North Dakota, the Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can take various forms, including: 1. Right of First Refusal: This type of reservation grants the lessor the first opportunity to purchase or match any offer made by a third party to buy the produced oil or gas. Should a third party express interest in acquiring the production, the lessor can exercise their right of first refusal and acquire it on the same terms and conditions. 2. Preferred Share of Production: Under this reservation, the lessor is entitled to a specific percentage or share of the produced oil or gas. This ensures that the lessor receives a predetermined portion of the production, even before it is made available to other potential buyers. 3. Option to Purchase: In this scenario, the lessor has the choice to purchase the produced oil or gas at a predetermined price within a specified timeframe. This reservation gives the lessor flexibility in deciding whether to buy the production or let it be sold to third parties. These reservations are commonly negotiated between the lessor and lessee (the oil and gas company) during the lease agreement process. The specific terms and conditions of the reservation, such as the percentage of production or purchase price, can vary depending on the negotiating power of the parties involved and the prevailing market conditions. In summary, the North Dakota Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor grants the lessor certain privileges regarding the purchase or acquisition of the produced oil or gas. Whether through a right of first refusal, preferred share of production, or an option to purchase, these reservations ensure that the lessor can actively participate in and benefit from the extraction and sale of natural resources from their land.North Dakota Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor refers to a legal provision in oil and gas lease agreements that grants the lessor (the owner of the mineral rights) the ability to either purchase or take a share of the produced oil or gas before it is offered to third parties. This provision is often included to protect the lessor's interests and ensure they have the opportunity to partake in the benefits of the resource extraction. In North Dakota, the Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can take various forms, including: 1. Right of First Refusal: This type of reservation grants the lessor the first opportunity to purchase or match any offer made by a third party to buy the produced oil or gas. Should a third party express interest in acquiring the production, the lessor can exercise their right of first refusal and acquire it on the same terms and conditions. 2. Preferred Share of Production: Under this reservation, the lessor is entitled to a specific percentage or share of the produced oil or gas. This ensures that the lessor receives a predetermined portion of the production, even before it is made available to other potential buyers. 3. Option to Purchase: In this scenario, the lessor has the choice to purchase the produced oil or gas at a predetermined price within a specified timeframe. This reservation gives the lessor flexibility in deciding whether to buy the production or let it be sold to third parties. These reservations are commonly negotiated between the lessor and lessee (the oil and gas company) during the lease agreement process. The specific terms and conditions of the reservation, such as the percentage of production or purchase price, can vary depending on the negotiating power of the parties involved and the prevailing market conditions. In summary, the North Dakota Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor grants the lessor certain privileges regarding the purchase or acquisition of the produced oil or gas. Whether through a right of first refusal, preferred share of production, or an option to purchase, these reservations ensure that the lessor can actively participate in and benefit from the extraction and sale of natural resources from their land.
