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.
The Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor refers to a contractual provision that grants the lessor (landowner) certain rights and options in relation to the production or extraction of minerals, oil, gas, or any other natural resources from their property. This reservation serves as a protective measure for the lessor, ensuring they have the first opportunity to purchase or utilize the resources extracted from their property. This type of reservation is commonly seen in oil and gas leases or mineral rights agreements and is specifically designed to safeguard the interests of the lessor. By including such a provision in the contract, the lessor retains a certain level of control over the resources extracted from their land, allowing them to either purchase the production at a predetermined price or exercise a preferential right to match any offers made by third parties interested in purchasing the extracted commodities. The most common types of Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor include: 1. Simple Reservation of A Call On Production: This type of reservation grants the lessor the right to "call" or purchase the entire production or a specified portion of the extracted resources, typically at a predetermined price agreed upon in the lease or agreement. 2. Preferential Right to Purchase Production: This reservation gives the lessor the option to match any offers made by third parties interested in purchasing the production. If a third party presents a proposal to purchase the extracted resources, the lessor can choose to exercise their preferential right and acquire the production on the same terms and conditions as the third party's offer. 3. Percentage Reservation of A Call On Production: In this scenario, the lessor reserves the right to purchase a percentage of the extraction, such as a specific percentage of the oil or gas produced. This type of reservation allows the lessor to maintain a proportional share of the resources extracted from their land. 4. Limited Time Reservation: This type of reservation includes a specific time period during which the lessor can exercise their call or preferential right. After the expiration of this timeframe, the reservation may no longer be valid, and the lessor loses the opportunity to purchase the production. 5. Overriding Royalty Interest Reservation: This reservation grants the lessor both the right to receive a royalty on the production and a preferential right to purchase a percentage of the extracted resources. It is a dual benefit reservation that combines an economic interest with the opportunity to participate in the ownership of the resources. In summary, the Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor is a contractual provision that provides the lessor with protections and opportunities to purchase or match offers for the production of resources extracted from their property. These reservations can take various forms depending on the specific terms agreed upon between the lessor and lessee.The Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor refers to a contractual provision that grants the lessor (landowner) certain rights and options in relation to the production or extraction of minerals, oil, gas, or any other natural resources from their property. This reservation serves as a protective measure for the lessor, ensuring they have the first opportunity to purchase or utilize the resources extracted from their property. This type of reservation is commonly seen in oil and gas leases or mineral rights agreements and is specifically designed to safeguard the interests of the lessor. By including such a provision in the contract, the lessor retains a certain level of control over the resources extracted from their land, allowing them to either purchase the production at a predetermined price or exercise a preferential right to match any offers made by third parties interested in purchasing the extracted commodities. The most common types of Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor include: 1. Simple Reservation of A Call On Production: This type of reservation grants the lessor the right to "call" or purchase the entire production or a specified portion of the extracted resources, typically at a predetermined price agreed upon in the lease or agreement. 2. Preferential Right to Purchase Production: This reservation gives the lessor the option to match any offers made by third parties interested in purchasing the production. If a third party presents a proposal to purchase the extracted resources, the lessor can choose to exercise their preferential right and acquire the production on the same terms and conditions as the third party's offer. 3. Percentage Reservation of A Call On Production: In this scenario, the lessor reserves the right to purchase a percentage of the extraction, such as a specific percentage of the oil or gas produced. This type of reservation allows the lessor to maintain a proportional share of the resources extracted from their land. 4. Limited Time Reservation: This type of reservation includes a specific time period during which the lessor can exercise their call or preferential right. After the expiration of this timeframe, the reservation may no longer be valid, and the lessor loses the opportunity to purchase the production. 5. Overriding Royalty Interest Reservation: This reservation grants the lessor both the right to receive a royalty on the production and a preferential right to purchase a percentage of the extracted resources. It is a dual benefit reservation that combines an economic interest with the opportunity to participate in the ownership of the resources. In summary, the Pennsylvania Reservation of A Call On, Or Preferential Right to Purchase Production by Lessor is a contractual provision that provides the lessor with protections and opportunities to purchase or match offers for the production of resources extracted from their property. These reservations can take various forms depending on the specific terms agreed upon between the lessor and lessee.
