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.
Keywords: Indiana reservation, call on, preferential right, purchase production, lessor A detailed description of Indiana Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor: In the state of Indiana, a unique provision known as the "Indiana Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor" exists in certain lease agreements related to natural resources, such as oil, gas, or minerals. This provision safeguards the lessor's interests by granting them a specific set of rights when it comes to the production or extraction of these resources. The reservation is also commonly referred to as "The Indiana Call on, Or Preferential Right to Purchase Production," and it can offer significant benefits and protections to the lessor involved. There are several types of reservations that can fall under this category, including the following: 1. Reservation of a Call Right: This type of reservation allows the lessor to "call" or demand the purchase of a certain percentage of the total production from the lessee. In simpler terms, if the lessee decides to sell or transfer their share of the production to a third party, the lessor who holds the call right can exercise their preference and purchase that share at the same terms offered by the proposed third-party buyer. This ensures that the lessor has the opportunity to participate in any potential benefits arising from the production. 2. Preferential Right to Purchase Production: In this type of reservation, the lessor is granted a preferential right to purchase any or all of the production from a lease, should the lessee choose to sell it. Instead of just having the option to purchase a certain percentage like in the call right, the lessor can exercise their preference and acquire the entire production for themselves. This type of reservation gives the lessor more control and flexibility over the resources extracted from their property. It is important to note that the specific terms and conditions of an Indiana Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can vary from lease to lease. It is advisable for both the lessor and lessee to have a thorough understanding of these provisions and negotiate the terms to ensure fairness and protection for both parties. Overall, the Indiana Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a crucial element in lease agreements involving natural resource extraction. It provides the lessor with a unique advantage and ensures they have the opportunity to participate in the economic benefits resulting from the production.
