Utah Freestone Rider

Name: Utah Freestone Rider
Brand: US Legal Forms
Rating: 4.74 (414 reviews)

Category:

Oil Gas and Minerals - Lease Riders

State:

Multi-State

Control #:

US-OG-842

Format:

Instant download

Description

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.

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FAQ

The point of a retained-acreage provision is to be able to seek a new opportunity to lease unworked land to a different lessee, one who might do something productive with it. A Pugh clause is a negotiated provision in favor of the lessor. Pugh clauses modify pooling/unitization rights.

A retained-acreage provision requires the lessee to release land not assigned to a producing well (or active drilling/ reworking operations) at the end of the primary term. Unlike a Pugh clause, this has nothing to do with pooling/ unitization.

Usually added to the lease as an addendum, the pugh clause provides that at the end of the primary term (typically five years) the lease will terminate as to any acreage outside of a production unit.

A phrase (usually contained in a Pugh clause in an oil & gas lease) that terminates the lease after the primary term as to all formations below a particular depth typically defined as the stratigraphic equivalent of the base of the deepest producing formation in the unit.

A Pugh clause is designed to restrict the acreage that one well holds to only the acreage that is within the production unit, which is covered by that well.

The Pugh Clause ? A clause in the Oil and Gas Lease which modifies usual pooling language to provide that drilling operations on or production from a pooled unit will not preserve the whole lease.

?Many land professionals are confused about what is a vertical and what is a horizontal pugh clause. LEGALLY ? a vertical pugh clause is one where all acreage outside of the well/unit boundaries must be released. LEGALLY ? a horizontal pugh clause is one where you must release acreage below a certain depth.

Example of horizontal Pugh Clause A horizontal could offer a lease that spans certain acreage, including 30 acres across the property. This implies that a lessee would be able to access 30 acres of land across the drilled well, but no further.

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Utah Freestone Rider

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What is the difference between Pugh clause and retained acreage?

What is the difference between Pugh clause and retained-acreage clause?

What is the Pugh clause in a lease?

What is the stratigraphic Pugh clause?

What is the Pugh clause in AAPL?

What is the Pugh clause?

What is the vertical and horizontal Pugh clause?

What is an example of a horizontal Pugh clause?

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