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.
King Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal provision often found in oil and gas leases and agreements. It grants the lessor (landowner or a royalty interest owner) the right to purchase a portion of the oil, gas, or other minerals produced on the leased property before the lessee (the exploration or production company) sells it to third parties. This concept ensures that the lessor has a designated share of the production, protecting their economic interests. The King Washington Reservation can take different forms based on the specific terms and conditions agreed upon between the lessor and lessee. Some common forms include: 1. King Washington Reservation of a Call on Production: This provision allows the lessor to "call" or demand a specific quantity or percentage of the produced minerals. The lessor can purchase this allocated portion at market price before the lessee sells it to others. 2. King Washington Reservation of a Preferential Right to Purchase Production: This provision grants the lessor the first opportunity to purchase the mineral production before the lessee offers it to third parties. The lessor can match the terms and price offered by potential buyers, giving them a preferential advantage. 3. King Washington Reservation of a Right to Purchase Production at a Discounted Price: In this type, the lessor reserves the right to purchase the minerals at a discounted price, either a fixed percentage below market value or at a predetermined discounted rate. 4. King Washington Reservation of a Right to Purchase Royalty Interest: This provision allows the lessor to acquire a portion of the royalty interest associated with the production instead of buying the actual minerals. The lessor receives a share of the revenue generated from selling the production to third parties. These are just a few examples, and the specific terms and conditions of a King Washington Reservation can vary depending on the negotiations and agreement between the parties involved. It is essential to consult legal professionals and review the lease terms carefully to understand the exact nature and implications of this provision in any specific contract.King Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal provision often found in oil and gas leases and agreements. It grants the lessor (landowner or a royalty interest owner) the right to purchase a portion of the oil, gas, or other minerals produced on the leased property before the lessee (the exploration or production company) sells it to third parties. This concept ensures that the lessor has a designated share of the production, protecting their economic interests. The King Washington Reservation can take different forms based on the specific terms and conditions agreed upon between the lessor and lessee. Some common forms include: 1. King Washington Reservation of a Call on Production: This provision allows the lessor to "call" or demand a specific quantity or percentage of the produced minerals. The lessor can purchase this allocated portion at market price before the lessee sells it to others. 2. King Washington Reservation of a Preferential Right to Purchase Production: This provision grants the lessor the first opportunity to purchase the mineral production before the lessee offers it to third parties. The lessor can match the terms and price offered by potential buyers, giving them a preferential advantage. 3. King Washington Reservation of a Right to Purchase Production at a Discounted Price: In this type, the lessor reserves the right to purchase the minerals at a discounted price, either a fixed percentage below market value or at a predetermined discounted rate. 4. King Washington Reservation of a Right to Purchase Royalty Interest: This provision allows the lessor to acquire a portion of the royalty interest associated with the production instead of buying the actual minerals. The lessor receives a share of the revenue generated from selling the production to third parties. These are just a few examples, and the specific terms and conditions of a King Washington Reservation can vary depending on the negotiations and agreement between the parties involved. It is essential to consult legal professionals and review the lease terms carefully to understand the exact nature and implications of this provision in any specific contract.
