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 District of Columbia Pugh Clause is a legal provision that holds significant importance in the field of oil and gas leases and agreements. It specifically pertains to the termination of a lease while ensuring the release of certain portions of the land from the contract upon expiration. In the context of oil and gas operations, the Pugh Clause comes into play to address the issue of leasehold acreage. Typically, an oil and gas lease covers a large area of land, but the lessee may only be actively exploring or producing hydrocarbons from a limited portion of the leased premises. Here is where the Pugh Clause becomes relevant. The District of Columbia Pugh Clause, similar to Pugh Clauses used in other jurisdictions, facilitates the division of leased land into separate units or tracts based on production activities. Once the primary term of the lease expires, the Pugh Clause allows the lessee to release any acreage not included in active production. This division ensures that the lessor can lease the non-producing portions to other interested parties or renegotiate terms with existing lessees. The District of Columbia Pugh Clause, like other versions, helps prevent land from being held under a lease indefinitely, even if only a small portion is actively used for exploration or production. Its purpose is to promote fair and efficient use of land resources, providing opportunities for other parties to potentially benefit from the untapped potential of non-producing sections. Although the District of Columbia Pugh Clause does not have specific subtypes, it is worth mentioning that variations of this clause exist with different terms and language in different jurisdictions. Some states may have variations that are specific to their respective laws and regulations governing oil and gas leases. It is crucial for parties involved in oil and gas operations to consult legal experts familiar with the specific jurisdiction's Pugh Clause to ensure compliance and avoid any unnecessary misunderstandings or legal disputes. In summary, the District of Columbia Pugh Clause is an essential provision used in oil and gas leases. It allows lessees to release non-producing portions of the leased premises upon expiration of the primary term, promoting fair utilization of land and offering opportunities for other interested parties. While specific subtypes do not exist in the District of Columbia context, it is crucial to understand the variations of Pugh Clauses in other jurisdictions to ensure compliance with relevant laws and regulations.
