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 Travis Texas Pugh Clause is a legal provision found in oil and gas leases, primarily used in the state of Texas. It aims to address the issue of continuous development and the subsequent termination of non-producing parts of the leased property. The Pugh Clause is named after the landmark court case Travis v. McDonald, which established its importance and applicability. Under the Travis Texas Pugh Clause, if a lessee fails to produce hydrocarbons from a portion of the leased premises, the lease is terminated for that specific non-producing area. This provision prevents a lessee from holding onto unproductive land indefinitely, while also allowing a lessor to lease the non-producing parts to other interested parties. There are several variations of the Travis Texas Pugh Clause, each offering different terms and specifications. The Weighted Pugh Clause is one such variation, which allocates a proportionate share of the lease area based on production levels. If a section of the property is non-producing, it would be carved out, terminating the lease for that specific portion only. Another type is the Horizontal Pugh Clause, commonly used in oil and gas leases covering horizontal drilling operations. It allows the lessee to remain in possession of the leased property as long as there is continuous production, preventing the lease from terminating prematurely. The Shut-In Pugh Clause is another notable variation, allowing the lessee to temporarily suspend production due to unforeseen circumstances or other operational reasons. In this case, only the non-producing areas are terminated, while the lease remains active for the remaining productive portions. To summarize, the Travis Texas Pugh Clause is a crucial provision in oil and gas leases in Texas, which dictates the termination of non-producing portions of the leased property. Its variations include the Weighted Pugh Clause, Horizontal Pugh Clause, and Shut-In Pugh Clause, each tailored to address specific circumstances related to production levels, horizontal drilling operations, and temporary production suspensions.The Travis Texas Pugh Clause is a legal provision found in oil and gas leases, primarily used in the state of Texas. It aims to address the issue of continuous development and the subsequent termination of non-producing parts of the leased property. The Pugh Clause is named after the landmark court case Travis v. McDonald, which established its importance and applicability. Under the Travis Texas Pugh Clause, if a lessee fails to produce hydrocarbons from a portion of the leased premises, the lease is terminated for that specific non-producing area. This provision prevents a lessee from holding onto unproductive land indefinitely, while also allowing a lessor to lease the non-producing parts to other interested parties. There are several variations of the Travis Texas Pugh Clause, each offering different terms and specifications. The Weighted Pugh Clause is one such variation, which allocates a proportionate share of the lease area based on production levels. If a section of the property is non-producing, it would be carved out, terminating the lease for that specific portion only. Another type is the Horizontal Pugh Clause, commonly used in oil and gas leases covering horizontal drilling operations. It allows the lessee to remain in possession of the leased property as long as there is continuous production, preventing the lease from terminating prematurely. The Shut-In Pugh Clause is another notable variation, allowing the lessee to temporarily suspend production due to unforeseen circumstances or other operational reasons. In this case, only the non-producing areas are terminated, while the lease remains active for the remaining productive portions. To summarize, the Travis Texas Pugh Clause is a crucial provision in oil and gas leases in Texas, which dictates the termination of non-producing portions of the leased property. Its variations include the Weighted Pugh Clause, Horizontal Pugh Clause, and Shut-In Pugh Clause, each tailored to address specific circumstances related to production levels, horizontal drilling operations, and temporary production suspensions.
