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 Lima Arizona Pugh Clause is a legal provision that is commonly included in oil and gas leases. It serves to protect the rights of both the lessee (oil and gas company) and lessors (landowners) in the event of lease expiration or termination. This clause specifies the extent to which the lease should be terminated and the rights that may continue beyond the termination. In essence, the Lima Arizona Pugh Clause states that if the lessee fails to maintain production on a specific portion of the leased land, the lease will expire for that non-productive portion, while remaining in effect for the productive areas. This provision allows the lessor to regain control and negotiate new terms for the non-producing areas, enabling them to explore other leasing opportunities or enter into alternative agreements. By incorporating the Lima Arizona Pugh Clause, both parties are protected from unused land being tied up under a lease for an indefinite period. It ensures that the lessee cannot indefinitely retain control over unproductive portions of the land without actively exploring and producing. This provision promotes the efficient utilization of the leased acreage, benefitting both the lessee and lessor. Additionally, it should be noted that there aren't specifically identified types of Lima Arizona Pugh Clause since the clause itself is not exclusive to Lima, Arizona. The Pugh Clause is a globally recognized lease provision used in various oil and gas producing regions, enabling landowners and lessees to define their rights and obligations in a clear manner. Keywords: Lima Arizona, Pugh Clause, oil and gas leases, lessee, lessor, lease expiration, termination, productive areas, non-productive areas, exploring leasing opportunities, alternative agreements, global application.The Lima Arizona Pugh Clause is a legal provision that is commonly included in oil and gas leases. It serves to protect the rights of both the lessee (oil and gas company) and lessors (landowners) in the event of lease expiration or termination. This clause specifies the extent to which the lease should be terminated and the rights that may continue beyond the termination. In essence, the Lima Arizona Pugh Clause states that if the lessee fails to maintain production on a specific portion of the leased land, the lease will expire for that non-productive portion, while remaining in effect for the productive areas. This provision allows the lessor to regain control and negotiate new terms for the non-producing areas, enabling them to explore other leasing opportunities or enter into alternative agreements. By incorporating the Lima Arizona Pugh Clause, both parties are protected from unused land being tied up under a lease for an indefinite period. It ensures that the lessee cannot indefinitely retain control over unproductive portions of the land without actively exploring and producing. This provision promotes the efficient utilization of the leased acreage, benefitting both the lessee and lessor. Additionally, it should be noted that there aren't specifically identified types of Lima Arizona Pugh Clause since the clause itself is not exclusive to Lima, Arizona. The Pugh Clause is a globally recognized lease provision used in various oil and gas producing regions, enabling landowners and lessees to define their rights and obligations in a clear manner. Keywords: Lima Arizona, Pugh Clause, oil and gas leases, lessee, lessor, lease expiration, termination, productive areas, non-productive areas, exploring leasing opportunities, alternative agreements, global application.
