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 San Bernardino Pugh Clause, also known as the San Bernardino Pugh Clause in California, is a legally binding provision commonly used in real estate contracts. It is specifically designed to address the severance of oil and gas leases in San Bernardino County, California. The Pugh Clause is important for both landowners and oil and gas companies as it clarifies the terms under which a lease can be terminated and the rights and obligations of each party. Under the San Bernardino Pugh Clause, the agreement is structured in a way that separates the surface rights from the subsurface rights, specifically related to oil and gas exploration and extraction. This clause ensures that the property owner retains control over the non-oil and gas producing portions of the land in the event of lease termination. There are variations of the San Bernardino Pugh Clause, including the Standard Pugh Clause and the Modified Pugh Clause. The Standard Pugh Clause allows for the separation of leasehold into producing and non-producing parts, with the lease on the non-producing part terminated after a stipulated period if no drilling occurs. On the other hand, the Modified Pugh Clause facilitates the separation of leaseholds based on specific drilling units or areas, ensuring that lease rights only persist on the actively producing areas. The San Bernardino Pugh Clause serves as a safeguard for landowners, preventing oil and gas companies from holding large tracts of land under lease without taking any action. This provision protects landowners' interests by allowing them to explore other leasing opportunities or utilize the surface rights of their property for other purposes when the existing lease remains inactive. The Pugh Clause is essential in maintaining a balanced relationship between landowners and oil and gas companies in San Bernardino County, California. It promotes fair dealings, clarifies termination conditions, and preserves a landowner's rights outside the scope of oil and gas exploration.The San Bernardino Pugh Clause, also known as the San Bernardino Pugh Clause in California, is a legally binding provision commonly used in real estate contracts. It is specifically designed to address the severance of oil and gas leases in San Bernardino County, California. The Pugh Clause is important for both landowners and oil and gas companies as it clarifies the terms under which a lease can be terminated and the rights and obligations of each party. Under the San Bernardino Pugh Clause, the agreement is structured in a way that separates the surface rights from the subsurface rights, specifically related to oil and gas exploration and extraction. This clause ensures that the property owner retains control over the non-oil and gas producing portions of the land in the event of lease termination. There are variations of the San Bernardino Pugh Clause, including the Standard Pugh Clause and the Modified Pugh Clause. The Standard Pugh Clause allows for the separation of leasehold into producing and non-producing parts, with the lease on the non-producing part terminated after a stipulated period if no drilling occurs. On the other hand, the Modified Pugh Clause facilitates the separation of leaseholds based on specific drilling units or areas, ensuring that lease rights only persist on the actively producing areas. The San Bernardino Pugh Clause serves as a safeguard for landowners, preventing oil and gas companies from holding large tracts of land under lease without taking any action. This provision protects landowners' interests by allowing them to explore other leasing opportunities or utilize the surface rights of their property for other purposes when the existing lease remains inactive. The Pugh Clause is essential in maintaining a balanced relationship between landowners and oil and gas companies in San Bernardino County, California. It promotes fair dealings, clarifies termination conditions, and preserves a landowner's rights outside the scope of oil and gas exploration.
