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 Iowa Pugh Clause is a legal provision commonly used in real estate contracts and leases in the state of Iowa. It is designed to address certain aspects related to oil and gas leases and the termination of such leases. The Iowa Pugh Clause specifically focuses on the issue of leasehold acreage and the rights of the landowner when it comes to terminating sections of the lease while continuing with others. This clause ensures that after a certain period or specific event occurs, a landowner can release or terminate parts of their leased acreage while retaining the rights to other portions. The primary purpose of the Iowa Pugh Clause is to prevent the "held by production" concept which allows oil and gas companies to hold on to leased acreage for extended periods even if production is only taking place on a small portion. This clause allows landowners to protect their interests and regain control over unused portions of the leased land, thereby preventing companies from tying up large areas without actively utilizing them. There are various types of Iowa Pugh Clause provisions that can be included in contracts or leases, depending on the specific circumstances and requirements of the parties involved: 1. Pugh Clause by Acreage Release: This provision allows the landowner to release unproductive or unused portions of the leased acreage after a certain timeframe or when specific conditions are met. By doing so, the landowner can free up the unused land for other purposes or negotiate new leases with different terms. 2. Pugh Clause by Zone Release: In this type, the land is divided into different zones or areas, typically defined by geological formations or production activity. When production ceases or decreases significantly in a particular zone, the landowner has the right to terminate that zone while retaining control over other productive zones. 3. Pugh Clause by Time Release: This provision allows the landowner to terminate the lease or release acreage if no production activity or substantial development occurs within a specified timeframe. It aims to prevent companies from holding onto leased land without actively pursuing oil and gas exploration or production. 4. Comprehensive Pugh Clause: This version combines elements of all the above provisions, providing the landowner with flexibility and multiple grounds for terminating or releasing unproductive acreage. It is important to consult with a qualified attorney or legal expert familiar with Iowa law when including or negotiating an Iowa Pugh Clause in a real estate contract or lease agreement. They can provide guidance on the specific provisions and tailor them according to the unique needs of the landowner and the oil and gas company involved.
