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.
The New Mexico Extension of Primary Term of the Lease refers to a specific provision within a lease agreement that allows for the extension of the primary term of the lease in the state of New Mexico. This provision is commonly included in leases for oil, gas, mineral rights, or real estate properties and plays a crucial role in determining the overall duration of the lease. When it comes to the Extension of Primary Term of the Lease in New Mexico, there are a few different types that one should be aware of: 1. Fixed Extension: This type of extension allows for a specific additional period to be added to the primary term of the lease. For example, the lease may include a fixed extension clause stating that the primary term will be extended for five years if certain conditions or milestones are met. This could include drilling a well, reaching a specific production level, or meeting other predetermined criteria. 2. Rolling Extension: Also known as an automatic extension, this type of extension renews the primary term of the lease automatically unless either party provides notice of termination. The rolling extension clause is often included to ensure that the lease remains in effect until certain conditions are no longer met or until the resources on the property are fully exploited. If no termination notice is given, the lease will continue for the same duration as the initial primary term. 3. Mutual Agreement: Some leases may have a provision for the extension of the primary term by mutual agreement of both the lessor (property owner) and the lessee (property occupant). In such cases, the parties involved negotiate and agree upon the terms for extending the lease. This type of extension is more flexible and allows for customization based on changing circumstances or future considerations. It is important to note that the specific terms and conditions of the New Mexico Extension of Primary Term of the Lease can vary from lease to lease. The extension provisions are typically considered negotiable during the initial lease agreement, and it is crucial for both parties to carefully review and understand these terms before signing any contractual agreement. Overall, the New Mexico Extension of Primary Term of the Lease is an essential aspect of lease agreements in the state, allowing for the continuation and utilization of leased properties for various purposes. Whether it is a fixed extension, rolling extension, or a mutual agreement, these provisions ensure that the lease remains in effect beyond its primary term, creating stability and certainty for both lessors and lessees while taking into account the dynamic nature of property use and resource exploration.
