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.
New York Pugh Clause is a legal term commonly used in the real estate industry in New York. It refers to a provision in an oil and gas lease that establishes the rights and obligations of both the lessor (landowner) and the lessee (oil and gas company) regarding the termination of the lease as it relates to different formations, depths, or strata. The purpose of the New York Pugh Clause is to ensure that the lease does not continue indefinitely, but instead allows for termination or reduction based on specific criteria. This clause protects the rights of the landowner while providing stability and long-term prospects for oil and gas development. In its simplest form, the New York Pugh Clause requires the lessee to release or surrender any undeveloped portions of the leased premises that are not included in producing formations. This means that if certain formations are actively producing oil or gas, the lease will continue for those specific areas only. All other areas not included in the productive formations will be released and returned to the landowner, allowing them to negotiate new leases or explore alternative opportunities. The New York Pugh Clause can also have variations depending on the specific needs of the parties involved. Some common types of New York Pugh Clauses include: 1. Horizontal Pugh Clause: This clause focuses on the horizontal drilling technique prevalent in the industry. It allows for the termination or reduction of the lease for undeveloped lands outside the horizontal drilling unit or designated zones. 2. Vertical Pugh Clause: This clause primarily addresses the vertical drilling techniques and allows for the separation of formations based on different depths. It ensures that only productive formations at a specific depth will maintain the lease rights. 3. Deep Rights Pugh Clause: This clause emphasizes the depth at which the formations are considered productive. It enables the release of any formations that extend beyond the predetermined depth limit. 4. Limited Release Pugh Clause: This clause grants the lessee the option to relinquish only a portion of the leased premises, specifically those that are not included in the producing formations. This allows for a more flexible arrangement and preserves the lessee's interest in certain areas. It's important for both landowners and oil and gas companies to carefully review and negotiate the specific terms of the New York Pugh Clause to ensure a mutually beneficial arrangement and avoid any disputes or misunderstandings in the future. Legal counsel or industry experts should be consulted to ensure compliance with state laws and to protect the rights and interests of all parties involved.New York Pugh Clause is a legal term commonly used in the real estate industry in New York. It refers to a provision in an oil and gas lease that establishes the rights and obligations of both the lessor (landowner) and the lessee (oil and gas company) regarding the termination of the lease as it relates to different formations, depths, or strata. The purpose of the New York Pugh Clause is to ensure that the lease does not continue indefinitely, but instead allows for termination or reduction based on specific criteria. This clause protects the rights of the landowner while providing stability and long-term prospects for oil and gas development. In its simplest form, the New York Pugh Clause requires the lessee to release or surrender any undeveloped portions of the leased premises that are not included in producing formations. This means that if certain formations are actively producing oil or gas, the lease will continue for those specific areas only. All other areas not included in the productive formations will be released and returned to the landowner, allowing them to negotiate new leases or explore alternative opportunities. The New York Pugh Clause can also have variations depending on the specific needs of the parties involved. Some common types of New York Pugh Clauses include: 1. Horizontal Pugh Clause: This clause focuses on the horizontal drilling technique prevalent in the industry. It allows for the termination or reduction of the lease for undeveloped lands outside the horizontal drilling unit or designated zones. 2. Vertical Pugh Clause: This clause primarily addresses the vertical drilling techniques and allows for the separation of formations based on different depths. It ensures that only productive formations at a specific depth will maintain the lease rights. 3. Deep Rights Pugh Clause: This clause emphasizes the depth at which the formations are considered productive. It enables the release of any formations that extend beyond the predetermined depth limit. 4. Limited Release Pugh Clause: This clause grants the lessee the option to relinquish only a portion of the leased premises, specifically those that are not included in the producing formations. This allows for a more flexible arrangement and preserves the lessee's interest in certain areas. It's important for both landowners and oil and gas companies to carefully review and negotiate the specific terms of the New York Pugh Clause to ensure a mutually beneficial arrangement and avoid any disputes or misunderstandings in the future. Legal counsel or industry experts should be consulted to ensure compliance with state laws and to protect the rights and interests of all parties involved.
