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 Suffolk New York Pugh Clause is a legal provision specifically designed to address the handling of oil and gas leases within the region of Suffolk County, New York. This clause serves several purposes and is commonly included in lease agreements to ensure fairness and clarity for both the lessor (landowner) and lessee (oil or gas company). The Suffolk New York Pugh Clause is a form of a savings clause that protects the landowner's rights, while also allowing for the comprehensive development of the leased property. It effectively stipulates that if a portion of the leased land is not currently producing oil or gas in the agreed-upon primary term of the lease, then that particular portion of the property will automatically be released or renegotiated, freeing it from the obligations of the original lease. This clause is commonly employed in oil and gas leases to prevent land from being held under a lease indefinitely without actual production, thus the name "Pugh Clause." It prevents the lessee from holding the landowner's entire property under a single lease, even if only a fraction of it is actively producing. There are a few different variations of the Suffolk New York Pugh Clause, each with specific provisions tailored to meet the landowner's requirements and the lessee's operational needs. Some notable types include the Standard Pugh Clause, Modified Pugh Clause, and Vertical Pugh Clause. The Standard Pugh Clause typically severs non-producing portions of the leased land once the primary term of the lease expires, allowing the landowner to negotiate new lease terms or explore alternative development options. On the other hand, the Modified Pugh Clause gives the lessee an option to continue the lease for certain portions with productive wells while relinquishing the non-producing areas. The Vertical Pugh Clause is used when a leased property has multiple layers or strata, such as separate oil and gas formations. In this case, the clause allows the lessee to retain the rights to the productive strata while releasing the non-productive layers, preventing the entire land area from remaining locked under a single lease. In summary, the Suffolk New York Pugh Clause is a crucial component of oil and gas leases in Suffolk County. By ensuring fairness and releasing non-productive portions of the land, it allows for efficient development and maximizes opportunities for both landowners and lessees in the region's oil and gas industry.The Suffolk New York Pugh Clause is a legal provision specifically designed to address the handling of oil and gas leases within the region of Suffolk County, New York. This clause serves several purposes and is commonly included in lease agreements to ensure fairness and clarity for both the lessor (landowner) and lessee (oil or gas company). The Suffolk New York Pugh Clause is a form of a savings clause that protects the landowner's rights, while also allowing for the comprehensive development of the leased property. It effectively stipulates that if a portion of the leased land is not currently producing oil or gas in the agreed-upon primary term of the lease, then that particular portion of the property will automatically be released or renegotiated, freeing it from the obligations of the original lease. This clause is commonly employed in oil and gas leases to prevent land from being held under a lease indefinitely without actual production, thus the name "Pugh Clause." It prevents the lessee from holding the landowner's entire property under a single lease, even if only a fraction of it is actively producing. There are a few different variations of the Suffolk New York Pugh Clause, each with specific provisions tailored to meet the landowner's requirements and the lessee's operational needs. Some notable types include the Standard Pugh Clause, Modified Pugh Clause, and Vertical Pugh Clause. The Standard Pugh Clause typically severs non-producing portions of the leased land once the primary term of the lease expires, allowing the landowner to negotiate new lease terms or explore alternative development options. On the other hand, the Modified Pugh Clause gives the lessee an option to continue the lease for certain portions with productive wells while relinquishing the non-producing areas. The Vertical Pugh Clause is used when a leased property has multiple layers or strata, such as separate oil and gas formations. In this case, the clause allows the lessee to retain the rights to the productive strata while releasing the non-productive layers, preventing the entire land area from remaining locked under a single lease. In summary, the Suffolk New York Pugh Clause is a crucial component of oil and gas leases in Suffolk County. By ensuring fairness and releasing non-productive portions of the land, it allows for efficient development and maximizes opportunities for both landowners and lessees in the region's oil and gas industry.
