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.
Florida Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal provision in the state of Florida that grants certain rights to the lessor of an oil and gas lease. This provision allows the lessor to reserve the option to purchase or "call" a portion or all of the production from the leased property before it is sold to any third party. The purpose of this reservation is to secure the lessor's ability to benefit from the potential value of the production on the leased property. By reserving a call on the production, the lessor has the exclusive right to purchase the oil and gas produced on the leased property, typically at market price, before it is offered to any other potential buyers or purchasers. There are different types of Florida Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor that can be included in an oil and gas lease. These may include: 1. Specific Production Call: This type of reservation allows the lessor to call and purchase a specific amount or volume of the oil and gas production from the leased property. The quantity or volume is typically specified in the lease agreement. 2. First Right of Refusal: This type of reservation grants the lessor the first opportunity to purchase the production from the leased property once a third party presents an offer to purchase. The lessor has the right to match the offer or negotiate a different price with the lessee. 3. Proportionate Share Call: In this type of reservation, the lessor reserves the right to purchase a percentage or proportionate share of the production from the leased property. This allows the lessor to participate in the upside potential of the production while retaining ownership in a proportionate manner. 4. Enhanced Royalty Option: This reservation allows the lessor to convert a portion of their royalty interest into the right to purchase the production at a predetermined price. It provides the lessor with the ability to capture more value from the production through direct ownership. It is important for both lessors and lessees to clearly define the terms, conditions, and limitations of the Florida Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor in the lease agreement. This includes specifying the duration of the reservation, the process for exercising the right to purchase, potential purchase price calculations, and any notice requirements. Overall, the Florida Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a crucial provision in oil and gas leases, as it protects the lessor's interest and empowers them to benefit from the potential value of the production on their leased property.
