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.
A Hawaii Reservation of a Call on, or Preferential Right to Purchase Production by Lessor refers to a provision in a lease agreement where the lessor retains the option to buy or demand a specific amount of the leased property's production. This type of reservation gives the lessor an advantage in terms of securing the sale of the produced goods, especially when there is high demand or potential for price inflation. Here are relevant details and different types of Hawaii Reservation of a Call on, or Preferential Right to Purchase Production by Lessor: 1. Hawaii Reservation of a Call on Production: This type of reservation allows the lessor to exercise the right to purchase a certain quantity or percentage of the production from the leased property. The lessor can either buy the entire production or a specific portion, depending on the terms agreed upon in the lease agreement. 2. Hawaii Reservation of a Preferential Right to Purchase Production: With this type of reservation, the lessor is granted the first opportunity to purchase the leased property's production. In case the lessee receives an offer from another buyer, they must first offer the lessor the chance to match the terms of that offer and secure the sale. 3. Hawaii Reservation of a Call on Production at a Specified Price: In some cases, the lessor may reserve the right to purchase the leased property's production at a pre-determined price. This ensures that the lessor can acquire the goods at a specific cost, regardless of potential price fluctuations that may occur in the market. 4. Hawaii Reservation of a Preferential Right to Purchase Production During Specific Timeframes: The lease agreement may include a provision where the lessor has the exclusive right to purchase the production during specific periods or at certain intervals. This allows the lessor to plan their purchase and production activities accordingly. 5. Hawaii Reservation of a Call on Production in the Event of Default: If the lessee defaults on their lease obligations, the lessor may reserve the right to purchase the production as a means to recover any owed rent or damages. This provision acts as a form of security for the lessor in case of non-payment or breach of the lease terms. A Hawaii Reservation of a Call on, or Preferential Right to Purchase Production by Lessor empowers the lessor with the ability to participate in the benefits of the produced goods. By reserving this right, the lessor can ensure a steady flow of income or take advantage of profitable market conditions.
