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.
Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal term used in the oil and gas industry to describe the rights granted to the lessor in a mineral lease agreement. This clause is designed to allow the lessor to have the first option to purchase any production from the leased property, giving them an advantageous position over potential buyers. The Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can be classified into two main types: unconditional and conditional. 1. Unconditional Right: The unconditional right gives the lessor the unrestricted opportunity to purchase the production from the leased property. This means that whenever the lessee decides to sell the produced resources, the lessor has the absolute priority to buy it at a predetermined price or under negotiated terms. This type of reservation of a call on or preferential right to purchase production by lessor grants them a significant advantage in acquiring the resources produced. 2. Conditional Right: The conditional right depends on specific circumstances or triggers identified in the lease agreement. For example, the lessor may have the priority to purchase any production only if the lessee receives an offer from a third party. In this case, the lessor can match or exceed the offer price and acquire the production. The conditional reservation of a call on or preferential right to purchase production by lessor ensures that the lessor has an opportunity to secure the production if there is interest from other potential buyers. These types of reservations are crucial for lessors as they provide a level of control and safeguard their interests in the production of minerals on their property. By exercising the Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor, they can obtain the resources at a fair price or mitigate any potential loss by preventing the lessee from selling to external buyers at a lower valuation. In summary, the Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor empowers the lessor with certain rights and priority when it comes to acquiring the production from the leased property. This valuable clause serves to protect the lessor's interests and ensure they have the opportunity to participate in the financial benefits of the produced minerals.Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal term used in the oil and gas industry to describe the rights granted to the lessor in a mineral lease agreement. This clause is designed to allow the lessor to have the first option to purchase any production from the leased property, giving them an advantageous position over potential buyers. The Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can be classified into two main types: unconditional and conditional. 1. Unconditional Right: The unconditional right gives the lessor the unrestricted opportunity to purchase the production from the leased property. This means that whenever the lessee decides to sell the produced resources, the lessor has the absolute priority to buy it at a predetermined price or under negotiated terms. This type of reservation of a call on or preferential right to purchase production by lessor grants them a significant advantage in acquiring the resources produced. 2. Conditional Right: The conditional right depends on specific circumstances or triggers identified in the lease agreement. For example, the lessor may have the priority to purchase any production only if the lessee receives an offer from a third party. In this case, the lessor can match or exceed the offer price and acquire the production. The conditional reservation of a call on or preferential right to purchase production by lessor ensures that the lessor has an opportunity to secure the production if there is interest from other potential buyers. These types of reservations are crucial for lessors as they provide a level of control and safeguard their interests in the production of minerals on their property. By exercising the Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor, they can obtain the resources at a fair price or mitigate any potential loss by preventing the lessee from selling to external buyers at a lower valuation. In summary, the Travis Texas Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor empowers the lessor with certain rights and priority when it comes to acquiring the production from the leased property. This valuable clause serves to protect the lessor's interests and ensure they have the opportunity to participate in the financial benefits of the produced minerals.
