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 Hennepin Minnesota Pugh Clause, also referred to as the Hennepin County Pugh Clause, is a legal provision commonly included in oil and gas leases. It is particularly significant for landowners in Hennepin County, Minnesota, as it affects the rights and obligations of both parties involved in the lease agreement. The primary purpose of the Hennepin Minnesota Pugh Clause is to ensure that the lease terms are clear regarding the ownership and release of different portions of the leased land. When an oil or gas well is drilled on the leased property, the Pugh Clause delineates the division of interests between the producing and non-producing areas. It aims to prevent an entire lease from being held indefinitely due to the production occurring only on a small portion of the land. One type of Hennepin Minnesota Pugh Clause is the "Vertical Pugh Clause." This clause separates the lease into vertically divided sections, usually based on geological formations. If production occurs in one section, only that segment of the leased land remains under the lease, while the non-producing sections are released from the agreement. Another type is the "Horizontal Pugh Clause." Unlike the vertical division, this clause divides the lease horizontally. It allows for the release of non-producing acreage if oil or gas production is obtained at a certain depth or stratum, irrespective of the vertical sectioning. A third type is the "Depth Pugh Clause," which focuses on specific depths or geological formations. If production occurs solely in one formation but not in another, the Pugh Clause allows for the release of the non-producing formation, preserving the lease's validity only for the productive zones. By incorporating the Hennepin Minnesota Pugh Clause in an oil or gas lease, both the landowners and the lessees can protect their interests. It enables landowners to prevent indefinite lease holding of unproductive areas and ensures leaseholders can focus their resources on viable production sites. The Pugh Clause helps maintain a fair and efficient system for both parties involved in the exploration and extraction of oil and gas resources in Hennepin County, Minnesota.The Hennepin Minnesota Pugh Clause, also referred to as the Hennepin County Pugh Clause, is a legal provision commonly included in oil and gas leases. It is particularly significant for landowners in Hennepin County, Minnesota, as it affects the rights and obligations of both parties involved in the lease agreement. The primary purpose of the Hennepin Minnesota Pugh Clause is to ensure that the lease terms are clear regarding the ownership and release of different portions of the leased land. When an oil or gas well is drilled on the leased property, the Pugh Clause delineates the division of interests between the producing and non-producing areas. It aims to prevent an entire lease from being held indefinitely due to the production occurring only on a small portion of the land. One type of Hennepin Minnesota Pugh Clause is the "Vertical Pugh Clause." This clause separates the lease into vertically divided sections, usually based on geological formations. If production occurs in one section, only that segment of the leased land remains under the lease, while the non-producing sections are released from the agreement. Another type is the "Horizontal Pugh Clause." Unlike the vertical division, this clause divides the lease horizontally. It allows for the release of non-producing acreage if oil or gas production is obtained at a certain depth or stratum, irrespective of the vertical sectioning. A third type is the "Depth Pugh Clause," which focuses on specific depths or geological formations. If production occurs solely in one formation but not in another, the Pugh Clause allows for the release of the non-producing formation, preserving the lease's validity only for the productive zones. By incorporating the Hennepin Minnesota Pugh Clause in an oil or gas lease, both the landowners and the lessees can protect their interests. It enables landowners to prevent indefinite lease holding of unproductive areas and ensures leaseholders can focus their resources on viable production sites. The Pugh Clause helps maintain a fair and efficient system for both parties involved in the exploration and extraction of oil and gas resources in Hennepin County, Minnesota.
