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 Tarrant Texas Pugh Clause is a legal provision used in oil and gas leases in Tarrant County, Texas, typically included to address the issue of continuous operations and lease termination. This clause holds significance in safeguarding the rights of both the lessor (landowner) and the lessee (oil and gas company) by specifying the circumstances under which the lease may be terminated or extended. The Tarrant Texas Pugh Clause, also known as the Pugh Provision, is named after Lawrence T. Pugh, an influential Texas attorney and former assistant attorney general. Its purpose is to ensure that when a portion of the leased land is no longer productive or utilized for oil and gas operations, the lease agreement does not automatically extend to cover the entire property. The Pugh Clause essentially operates on the principle that if a lessee fails to drill or produce oil or gas within a specified area (also known as the Pugh Tract), the lease will only remain in effect for that portion of the land where production is ongoing. This clause thus allows the lessor to regain control of non-producing areas, granting them the freedom to negotiate new lease terms or enter into agreements with other companies interested in exploration or development. There are variations of the Tarrant Texas Pugh Clause, including the Standard Pugh Clause and the Modified Pugh Clause. The Standard Pugh Clause stipulates that if oil or gas production ceases on a specific portion of the leased land, the lease remains in effect only for the productive portion while expiring on the non-productive sections. Conversely, the Modified Pugh Clause provides a more flexible approach, allowing the lessee to continue operations on a smaller tract, even if production ceases on a larger portion. The Tarrant Texas Pugh Clause plays a vital role in protecting the rights and interests of both parties involved in an oil and gas lease agreement. By clearly establishing the terms for lease termination and extension based on productive or non-productive areas, this clause ensures fairness and transparency while facilitating efficient and effective land usage in Tarrant County, Texas.The Tarrant Texas Pugh Clause is a legal provision used in oil and gas leases in Tarrant County, Texas, typically included to address the issue of continuous operations and lease termination. This clause holds significance in safeguarding the rights of both the lessor (landowner) and the lessee (oil and gas company) by specifying the circumstances under which the lease may be terminated or extended. The Tarrant Texas Pugh Clause, also known as the Pugh Provision, is named after Lawrence T. Pugh, an influential Texas attorney and former assistant attorney general. Its purpose is to ensure that when a portion of the leased land is no longer productive or utilized for oil and gas operations, the lease agreement does not automatically extend to cover the entire property. The Pugh Clause essentially operates on the principle that if a lessee fails to drill or produce oil or gas within a specified area (also known as the Pugh Tract), the lease will only remain in effect for that portion of the land where production is ongoing. This clause thus allows the lessor to regain control of non-producing areas, granting them the freedom to negotiate new lease terms or enter into agreements with other companies interested in exploration or development. There are variations of the Tarrant Texas Pugh Clause, including the Standard Pugh Clause and the Modified Pugh Clause. The Standard Pugh Clause stipulates that if oil or gas production ceases on a specific portion of the leased land, the lease remains in effect only for the productive portion while expiring on the non-productive sections. Conversely, the Modified Pugh Clause provides a more flexible approach, allowing the lessee to continue operations on a smaller tract, even if production ceases on a larger portion. The Tarrant Texas Pugh Clause plays a vital role in protecting the rights and interests of both parties involved in an oil and gas lease agreement. By clearly establishing the terms for lease termination and extension based on productive or non-productive areas, this clause ensures fairness and transparency while facilitating efficient and effective land usage in Tarrant County, Texas.
