This is a Preferential Right to Purchase Production form. The assignor reserves the right at any time and from time to time to purchase or designate a purchaser for all of assignees oil and other liquid hydrocarbons produced and saved from the interests in the lands and leases that are the subject of this assignment.
Ohio Preferential Right to Purchase Production refers to a legal provision that grants certain parties the right to have the first opportunity to purchase or lease oil and gas mineral rights before they are offered to the public. This provision is aimed at protecting the interests of existing mineral owners and ensuring fair market practices in Ohio's oil and gas industry. The Ohio Preferential Right to Purchase Production is governed by the Ohio Revised Code and is applicable to various types of oil and gas production activities. Some different types of Ohio Preferential Right to Purchase Production include: 1. Oil and Gas Lease: When an existing mineral owner enters into an oil and gas lease, they may negotiate the inclusion of a preferential right to purchase provision. This provision entitles the mineral owner to have the first opportunity to buy the leased oil and gas production if the lessee decides to sell or assign their interest in the lease. 2. Assignment of Oil and Gas Mineral Rights: If a mineral owner decides to assign or transfer their oil and gas rights to another party, they can include a preferential right to purchase provision in the assignment agreement. This provision allows the original mineral owner to repurchase the assigned rights if the assignee decides to sell them in the future. 3. Division Orders: In the context of oil and gas production, division orders are legal agreements between the operator and mineral owners that establish the distribution of royalty payments. These division orders can also include a preferential right to purchase provision, giving the mineral owners the first opportunity to buy additional working interests in the well or lease. 4. Unitization Agreements: In Ohio, when multiple mineral owners agree to combine their tracts of land into a unit for more efficient oil and gas production, they can enter into unitization agreements. These agreements may include a preferential right to purchase provision, giving the participating mineral owners the first opportunity to purchase additional working interests in the unit. Ohio's Preferential Right to Purchase Production is designed to ensure transparency and fairness in the state's oil and gas industry. It allows existing mineral owners to protect their investments and maintain control over the development of their resources. This provision plays a crucial role in maintaining a balanced marketplace for oil and gas transactions in Ohio, benefiting both mineral owners and operators.
