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.
Indiana Continuous Development, Retained Acreage, and Depth Limitations
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Hear this out loud PauseRetained Acreage ? A clause that provides that a lease will continue after the expiration of the primary term as to a certain number of acres associated with each of the wells drilled under the lease. PUGH CLAUSE/RETAINED ACREAGE Holliday Energy Law Group ? 2020/12 ? P... Holliday Energy Law Group ? 2020/12 ? P... PDF
Hear this out loud PauseThe point of a retained-acreage provision is to be able to seek a new opportunity to lease unworked land to a different lessee, one who might do something productive with it. A Pugh clause is a negotiated provision in favor of the lessor. Pugh clauses modify pooling/unitization rights. Oil & Gas Leases ? Pugh Clauses and Retained Acreage Provisions ericejohnson.com ? courses ? oil_gas_18 ? O... ericejohnson.com ? courses ? oil_gas_18 ? O...
Usually added to the lease as an addendum, the pugh clause provides that at the end of the primary term (typically five years) the lease will terminate as to any acreage outside of a production unit.
Hear this out loud PauseA Pugh Clause is enforced to ensure that a lessee can be prevented from declaring all lands under an oil and gas lease as being held by production. This remains true even when production only takes place on a fraction of the property. Pugh Clause in Oil And Gas Lease: Definition and Types pheasantenergy.com ? pugh-clause pheasantenergy.com ? pugh-clause