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 Bexar Texas Pugh Clause is a significant provision found in oil and gas leases that outlines the terms for the release of acreage not included within a production unit. It determines the rights and obligations of both the lessor (landowner) and the lessee (oil and gas company) regarding the separation and release of non-producing portions of the leased property. The purpose of the Bexar Texas Pugh Clause is to protect the interest of both parties and ensure that the lessee does not indefinitely hold onto the non-producing sections of the leased premises. It allows the lessor to explore further leasing opportunities while keeping the lessee accountable for actively exploring and developing the productive areas. There are different types of Bexar Texas Pugh Clauses that may be employed in oil and gas leases. These include: 1. Standard Pugh Clause: This is the most common type of Pugh Clause that is utilized in Bexar County, Texas. It stipulates that at the end of the primary term of the lease, any undeveloped portions of the leased premises will be released, allowing the lessor to negotiate new lease agreements with other oil and gas companies or individuals. 2. Continuous Development Pugh Clause: This type of Pugh Clause requires the lessee to continuously develop the productive areas of the leased premises. If a portion of the leasehold remains undeveloped, it will be severed from the main lease and returned to the lessor once the primary term expires. 3. Vertical Pugh Clause: The Vertical Pugh Clause focuses on separating the vertical formations within the leased premises. It allows the lessor to release non-producing formations while retaining the productive formations, ensuring maximum exploitation of the resource potential. 4. Horizontal Pugh Clause: Unlike the vertical Pugh Clause, the Horizontal Pugh Clause concentrates on separating the leased premises horizontally. It enables the lessor to release non-producing areas at each specified depth or target formation, granting them the opportunity to negotiate separate lease agreements for those sections. The Bexar Texas Pugh Clause has become an essential provision in petroleum leases to safeguard the rights of both the landowner and the oil and gas company. It ensures that non-productive acreage within the leased premises can be released, allowing for further lease opportunities and responsible resource development.The Bexar Texas Pugh Clause is a significant provision found in oil and gas leases that outlines the terms for the release of acreage not included within a production unit. It determines the rights and obligations of both the lessor (landowner) and the lessee (oil and gas company) regarding the separation and release of non-producing portions of the leased property. The purpose of the Bexar Texas Pugh Clause is to protect the interest of both parties and ensure that the lessee does not indefinitely hold onto the non-producing sections of the leased premises. It allows the lessor to explore further leasing opportunities while keeping the lessee accountable for actively exploring and developing the productive areas. There are different types of Bexar Texas Pugh Clauses that may be employed in oil and gas leases. These include: 1. Standard Pugh Clause: This is the most common type of Pugh Clause that is utilized in Bexar County, Texas. It stipulates that at the end of the primary term of the lease, any undeveloped portions of the leased premises will be released, allowing the lessor to negotiate new lease agreements with other oil and gas companies or individuals. 2. Continuous Development Pugh Clause: This type of Pugh Clause requires the lessee to continuously develop the productive areas of the leased premises. If a portion of the leasehold remains undeveloped, it will be severed from the main lease and returned to the lessor once the primary term expires. 3. Vertical Pugh Clause: The Vertical Pugh Clause focuses on separating the vertical formations within the leased premises. It allows the lessor to release non-producing formations while retaining the productive formations, ensuring maximum exploitation of the resource potential. 4. Horizontal Pugh Clause: Unlike the vertical Pugh Clause, the Horizontal Pugh Clause concentrates on separating the leased premises horizontally. It enables the lessor to release non-producing areas at each specified depth or target formation, granting them the opportunity to negotiate separate lease agreements for those sections. The Bexar Texas Pugh Clause has become an essential provision in petroleum leases to safeguard the rights of both the landowner and the oil and gas company. It ensures that non-productive acreage within the leased premises can be released, allowing for further lease opportunities and responsible resource development.
