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.
Michigan Reservation of a Call on, Or Preferential Right to Purchase Production by Lessor is a legal provision that grants the lessor certain rights and options over the production of natural resources on leased property. This right ensures that the lessor has the opportunity to benefit from any potential future developments or discoveries on the land they have leased. The Michigan Reservation of a Call on, Or Preferential Right to Purchase Production by Lessor can be categorized into two main types: 1. Reservation of a Call: In this type of reservation, the lessor retains the right to "call" or purchase a certain percentage or quantity of the production from the lessee, usually at an agreed-upon price. This reservation allows the lessor to participate in the profits generated from the production and ensures they have a direct stake in the potential success of the operation. 2. Preferential Right to Purchase Production: This type of reservation grants the lessor the first right or priority to purchase the production before it is sold to any other party. The lessor has the option to buy the entire production or a certain percentage thereof, at a predetermined price or a fair market value. This provision guarantees that the lessor has the opportunity to acquire the production and reap the associated benefits. The Michigan Reservation of a Call on, Or Preferential Right to Purchase Production by Lessor is vital for protecting the interests of the lessor and enabling them to capitalize on the potential value of their leased property. It ensures that they have a direct say in the utilization and distribution of the land's resources, providing a fair and equitable framework for all parties involved. Keywords: Michigan, Reservation of a Call, Preferential Right, Purchase Production, Lessor, lease, natural resources, developments, discoveries, profits, stake, participation, opportunity, success, priority, purchase, predetermined price, fair market value, interests, utilization, distribution.
