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.
Ohio Reservation of a Call on, or Preferential Right to Purchase Production by Lessor A reservation of a call on, or preferential right to purchase production by the lessor is a legal provision found in oil and gas leases in the state of Ohio. This provision allows the lessor (the owner of the mineral rights) to retain the option to either purchase or call for the purchase of the oil and gas production from the lessee (the company or individual who possesses the right to extract the minerals) before it is sold to a third party. The primary intent of this reservation is to give the lessor the opportunity to share in the profits derived from the production of the oil and gas in their own property. It also grants them the ability to control the ownership and sale of the production, ensuring the lessee does not transfer the rights hastily without adequate consideration. There are two main types of Ohio reservation of a call on, or preferential right to purchase production by lessor: 1. Call on Production: Under this type, the lessor has the right to demand the delivery of oil and gas production from the lessee at an agreed-upon price. The lease agreement will specify the terms and conditions for exercising this right, such as the quantity of oil and gas, the price, and the timeframes within which the call can be made. 2. Preferential Right to Purchase Production: This type of reservation grants the lessor the first opportunity to purchase the produced oil and gas before it is offered to any third party. If the lessor notifies the lessee of their intent to purchase, the lessee must offer the production to the lessor on the agreed upon terms. If the lessor decides not to purchase, the lessee can then sell the production to another party. The inclusion of an Ohio reservation of a call on, or preferential right to purchase production by the lessor in an oil and gas lease provides important benefits to the lessor. It safeguards their right to benefit from the natural resources beneath their property, prevents hasty or unfavorable transfers of the production, and allows for potential economic gain through involvement in the sale or purchase of the extracted minerals. Overall, the Ohio reservation of a call on, or preferential right to purchase production by the lessor is a crucial provision in oil and gas leases, ensuring that property owners have a say in the production and sale of valuable natural resources on their land. It promotes fairness, transparency, and protects the interests of both lessors and lessees in the extraction industry.Ohio Reservation of a Call on, or Preferential Right to Purchase Production by Lessor A reservation of a call on, or preferential right to purchase production by the lessor is a legal provision found in oil and gas leases in the state of Ohio. This provision allows the lessor (the owner of the mineral rights) to retain the option to either purchase or call for the purchase of the oil and gas production from the lessee (the company or individual who possesses the right to extract the minerals) before it is sold to a third party. The primary intent of this reservation is to give the lessor the opportunity to share in the profits derived from the production of the oil and gas in their own property. It also grants them the ability to control the ownership and sale of the production, ensuring the lessee does not transfer the rights hastily without adequate consideration. There are two main types of Ohio reservation of a call on, or preferential right to purchase production by lessor: 1. Call on Production: Under this type, the lessor has the right to demand the delivery of oil and gas production from the lessee at an agreed-upon price. The lease agreement will specify the terms and conditions for exercising this right, such as the quantity of oil and gas, the price, and the timeframes within which the call can be made. 2. Preferential Right to Purchase Production: This type of reservation grants the lessor the first opportunity to purchase the produced oil and gas before it is offered to any third party. If the lessor notifies the lessee of their intent to purchase, the lessee must offer the production to the lessor on the agreed upon terms. If the lessor decides not to purchase, the lessee can then sell the production to another party. The inclusion of an Ohio reservation of a call on, or preferential right to purchase production by the lessor in an oil and gas lease provides important benefits to the lessor. It safeguards their right to benefit from the natural resources beneath their property, prevents hasty or unfavorable transfers of the production, and allows for potential economic gain through involvement in the sale or purchase of the extracted minerals. Overall, the Ohio reservation of a call on, or preferential right to purchase production by the lessor is a crucial provision in oil and gas leases, ensuring that property owners have a say in the production and sale of valuable natural resources on their land. It promotes fairness, transparency, and protects the interests of both lessors and lessees in the extraction industry.
