This is a Preferential Right to Purchase Production form. The assignor reserves the right at any time and from time to time to purchase or designate a purchaser for all of assignees oil and other liquid hydrocarbons produced and saved from the interests in the lands and leases that are the subject of this assignment.
New York Preferential Right to Purchase Production
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Multi-State
Control #:
US-OG-505
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Word;
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FAQ
The right that nonselling participating parties have in a lease, well or unit to proportionately acquire the interest that a participating party proposes to sell to a third party.
Preferential Right means any right or agreement that enables any Person to purchase or acquire any Asset or any interest therein or portion thereof as a result of or in connection with the execution or delivery of this Agreement or the consummation of the transactions contemplated hereby.
In this context, a preferent right to payment means a right to payment ?out of? the property in preference to other claims. ingly, the creditor has a right to be paid first out of the proceeds of the realisation of the secured property.
In a ROFR agreement, neither party has an obligation to buy or sell anything. The seller simply has to give the other party the option to be the buyer. Right of first refusal agreements can come in a variety of forms. Some have a time limit, while others are indefinite.
