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 Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor is a provision commonly found in oil and gas leases. In this context, the lessor, who is the owner of the mineral rights, retains certain rights regarding the produced minerals. The Reservation of a Call on or Preferential Right to Purchase Production by Lessor allows the lessor to either call for a share of the production or to have the first opportunity to purchase the produced minerals before they are sold to a third party. This provision gives the lessor the ability to actively participate in the production and marketing of the minerals extracted from their property. The primary purpose of this reservation is to ensure that the lessor benefits from the potential profits generated by the production and sale of the minerals. It grants them greater control and involvement in the leasing and development process. There are different types of Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor: 1. Right to Call: In this type, the lessor has the right to demand a certain portion or percentage of the produced minerals. This provision can be exercised at any time during the lease period or within a specific timeframe specified in the lease agreement. 2. Right of First Refusal: With this type, the lessor has the privilege of being the first to receive an offer to purchase the produced minerals. If the lessee receives a favorable offer from a third party, they must first present it to the lessor who then has the option to match the terms and acquire the minerals. 3. Preferential Right to Purchase: This variant grants the lessor the exclusive right to purchase the produced minerals at a specified price and on specified terms. This right may be exercised when the lessee intends to sell the minerals to a third party, giving the lessor the opportunity to retain ownership. 4. Fractional Working Interest: In some cases, the lessor may negotiate for a fractional working interest in the lease, giving them direct participation and a proportionate share of the profits from the production. 5. Percentage of Revenue: Instead of acquiring a physical interest or the right to purchase minerals, the lessor may choose to reserve a percentage of the revenue generated from the sale of the produced minerals. This approach allows the lessor to benefit from the financial outcome without having to bear the operational responsibilities. Overall, the Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor is a crucial provision in oil and gas leases. It empowers the lessor by providing an opportunity to actively participate in the production process and ensures their interests are protected, both financially and strategically.The Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor is a provision commonly found in oil and gas leases. In this context, the lessor, who is the owner of the mineral rights, retains certain rights regarding the produced minerals. The Reservation of a Call on or Preferential Right to Purchase Production by Lessor allows the lessor to either call for a share of the production or to have the first opportunity to purchase the produced minerals before they are sold to a third party. This provision gives the lessor the ability to actively participate in the production and marketing of the minerals extracted from their property. The primary purpose of this reservation is to ensure that the lessor benefits from the potential profits generated by the production and sale of the minerals. It grants them greater control and involvement in the leasing and development process. There are different types of Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor: 1. Right to Call: In this type, the lessor has the right to demand a certain portion or percentage of the produced minerals. This provision can be exercised at any time during the lease period or within a specific timeframe specified in the lease agreement. 2. Right of First Refusal: With this type, the lessor has the privilege of being the first to receive an offer to purchase the produced minerals. If the lessee receives a favorable offer from a third party, they must first present it to the lessor who then has the option to match the terms and acquire the minerals. 3. Preferential Right to Purchase: This variant grants the lessor the exclusive right to purchase the produced minerals at a specified price and on specified terms. This right may be exercised when the lessee intends to sell the minerals to a third party, giving the lessor the opportunity to retain ownership. 4. Fractional Working Interest: In some cases, the lessor may negotiate for a fractional working interest in the lease, giving them direct participation and a proportionate share of the profits from the production. 5. Percentage of Revenue: Instead of acquiring a physical interest or the right to purchase minerals, the lessor may choose to reserve a percentage of the revenue generated from the sale of the produced minerals. This approach allows the lessor to benefit from the financial outcome without having to bear the operational responsibilities. Overall, the Collin Texas Reservation of a Call on or Preferential Right to Purchase Production by Lessor is a crucial provision in oil and gas leases. It empowers the lessor by providing an opportunity to actively participate in the production process and ensures their interests are protected, both financially and strategically.
