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.
North Carolina Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor In North Carolina, the Reservation of a Call on, or Preferential Right to Purchase Production by Lessor refers to a specific provision in oil and gas lease agreements. This provision grants the lessor (landowner) the right to purchase the lessee's (oil or gas company) production before it is sold to a third party. It is an important contractual clause that allows the lessor to retain control over the sale and production of oil or gas resources on their property. Keywords: North Carolina, Reservation of a Call on, Preferential Right to Purchase Production, Lessor, oil and gas lease agreements, lessor's control, landowner, production, third party. Types of North Carolina Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor: 1. First Right of Refusal: This type of reservation grants the lessor the first opportunity to purchase the produced oil or gas under the same terms and conditions as offered by a third-party buyer. The lessor has the option to accept or decline the purchase offer within a specified timeframe. 2. Right of First Offer: In this type, the lessor has the right to receive an offer from the lessee before the product is marketed to other potential buyers. The lessor can accept or reject the offer made by the lessee and negotiate terms accordingly. 3. Right of First Refusal: A lessor with this reservation has the right to match the price and terms offered by a third-party buyer for the purchase of the production. If the lessor exercises this right, the lessee is obligated to sell the production to the lessor instead of the third party. 4. Right to Purchase a Portion: This type of reservation allows the lessor to purchase a certain portion or percentage of the production, rather than the entire production. The lessor can specify the portion they wish to purchase and the lessee is bound to sell that portion to the lessor. 5. Right to Purchase at a Specific Price: Under this reservation, the lessor has the right to purchase the produced oil or gas at a pre-determined price agreed upon in the lease agreement. This fixed price protects the lessor from any future price fluctuations or changes in the market. 6. Right to Purchase Within a Specific Timeframe: This reservation grants the lessor the right to purchase the production within a specified time period, typically stated in the lease agreement. The lessor must exercise this right within the designated timeframe, after which the option may expire. In conclusion, the North Carolina Reservation of a Call on, or Preferential Right to Purchase Production by Lessor is a crucial provision in oil and gas lease agreements. It empowers the lessor with various rights and options to control and potentially benefit from the sale and production of natural resources on their property.
