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.
Keywords: Salt Lake, Utah, Reservation of a Call on, Preferential Right to Purchase Production, Lessor Description: The Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor is a legal provision in the lease agreement between a lessor (landowner) and a lessee (oil and gas company). This provision grants the lessor the right to purchase any production from the leased property before the lessee sells it to another party. There are different types of Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor: 1. Primary Right to Purchase: This type of reservation gives the lessor the first opportunity to buy the production at a predetermined price before the lessee offers it to third parties. 2. Secondary Right to Purchase: In this case, the lessor has the right to purchase the production if the lessee receives an offer from a third party. The lessor can match the offer and acquire the production. 3. Tertiary Right to Purchase: This type grants the lessor the right to purchase the production if both the primary and secondary rights holders decline to exercise their rights. The purpose of the Salt Lake, Utah reservation of a call on, or preferential right to purchase production by the lessor is to protect the lessor's interest and ensure that they have the opportunity to benefit from the production from their property. It also provides the lessor with the ability to control the sale of production and potentially negotiate better terms. It is important for both lessor and lessee to clearly outline the terms and conditions of the reservation of a call on, or preferential right to purchase production in the lease agreement. This ensures transparency and avoids any potential disputes or misunderstandings. In summary, the Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor is a valuable provision that safeguards the lessor's interest and helps maintain a fair and mutually beneficial relationship between the lessor and lessee in the oil and gas industry.Keywords: Salt Lake, Utah, Reservation of a Call on, Preferential Right to Purchase Production, Lessor Description: The Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor is a legal provision in the lease agreement between a lessor (landowner) and a lessee (oil and gas company). This provision grants the lessor the right to purchase any production from the leased property before the lessee sells it to another party. There are different types of Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor: 1. Primary Right to Purchase: This type of reservation gives the lessor the first opportunity to buy the production at a predetermined price before the lessee offers it to third parties. 2. Secondary Right to Purchase: In this case, the lessor has the right to purchase the production if the lessee receives an offer from a third party. The lessor can match the offer and acquire the production. 3. Tertiary Right to Purchase: This type grants the lessor the right to purchase the production if both the primary and secondary rights holders decline to exercise their rights. The purpose of the Salt Lake, Utah reservation of a call on, or preferential right to purchase production by the lessor is to protect the lessor's interest and ensure that they have the opportunity to benefit from the production from their property. It also provides the lessor with the ability to control the sale of production and potentially negotiate better terms. It is important for both lessor and lessee to clearly outline the terms and conditions of the reservation of a call on, or preferential right to purchase production in the lease agreement. This ensures transparency and avoids any potential disputes or misunderstandings. In summary, the Salt Lake, Utah reservation of a call on, or preferential right to purchase production by a lessor is a valuable provision that safeguards the lessor's interest and helps maintain a fair and mutually beneficial relationship between the lessor and lessee in the oil and gas industry.
