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.
Idaho Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal term used in the context of oil and gas leases. It refers to a specific provision within a lease agreement that grants the lessor the right to purchase the production yielded from the leased property before it can be sold to a third party. This reservation or preferential right empowers the lessor to secure the produced resources for their own use or benefit. In Idaho, there are several types of reservations or preferential rights that lessors can employ to secure the produced resources. These may include: 1. Idaho Reservation of A Call on Production: This type of reservation gives the lessor the option to acquire or purchase the oil or gas production extracted from the leased property before it can be sold to any other party. By exercising this right, the lessor effectively becomes the exclusive buyer of the produced resources. 2. Idaho Reservation of A Preferential Right to Purchase Production: Similar to the previous type, this reservation allows the lessor to have the first opportunity to purchase the produced resources. However, unlike a call on production, the lessor is not obligated to acquire the resources but has the priority to do so before anyone else. 3. Idaho Reservation of A Call on Production by Lessor's Designee: This reservation enables the lessor to designate a third party, such as a company or individual, to exercise the call on production right on their behalf. The designee can purchase the produced resources on behalf of the lessor, ensuring that the lessor retains the benefits from the property. These types of reservations or preferential rights help protect the interests of the lessor by allowing them to benefit from the production of oil and gas on their leased property. By granting the lessor the first opportunity or exclusive right to purchase the resources, these provisions ensure that the lessor can secure the value of their investment and make the most out of the produced resources. Overall, the Idaho Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor provisions provide an essential mechanism for lessors to exercise control over the resources extracted from their leased properties, allowing them to maximize their financial gains and retain ownership over the produced oil and gas.
