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.
Nebraska Pugh Clause is a provision commonly used in oil and gas leases within the state of Nebraska that addresses the termination and release of land portions not held by production. This clause ensures that only the productive areas of land continue to be subject to the lease, allowing the lessor to regain ownership and control of non-productive tracts. The Nebraska Pugh Clause is specifically designed to prevent lease tying, which is the practice of keeping lands under lease indefinitely by merely holding production on a small portion. By including this clause, the lessor is protected against the perpetual tying up of non-productive land, while the lessee is given the opportunity to retain rights to productive portions. Keywords: Nebraska Pugh Clause, oil and gas leases, termination, release, land portions, held by production, lessor, ownership, control, non-productive, productive areas, lease tying, perpetually tying up, lessee, rights. There are different types of Nebraska Pugh Clause that can be utilized, depending on the specific requirements and agreements between the lessor and lessee. Some common variations include: 1. Individual Release Pugh Clause: This variation entitles the lessor to release non-productive tracts, or those not included in the production unit, while maintaining the lease over the productive areas. It allows the lessor to regain control over unproductive land, providing flexibility and avoiding unnecessary holding of undeveloped portions. 2. Horizontal Severance Pugh Clause: The horizontal severance Pugh Clause applies when an oil or gas well produces hydrocarbons from multiple formations or zones. This clause separates each formation or zone into distinct leases, allowing the non-productive tracts to be released while retaining the lease on productive areas. It ensures that each formation's lease is treated independently and maximizes the potential of the leasehold. 3. Vertical Seepage Pugh Clause: The vertical seepage Pugh Clause addresses situations where oil or gas migrates vertically between different strata or layers. This clause allows the lessor to release non-producing zones while maintaining the lease on productive reservoirs. By addressing vertical flow, this Pugh Clause prevents the lessee from keeping the entire property leased indefinitely based on the production from a single formation. Keywords: Individual Release Pugh Clause, horizontal severance, hydrocarbons, formations, zones, leases, non-productive tracts, horizontal severance Pugh Clause, vertical seepage Pugh Clause, strata, layers, reservoirs.
