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.
New York Use of Produced Oil Or Gas by Lessor: Explained In New York, the use of produced oil or gas by the lessor has become a significant aspect of the state's energy industry. With the abundance of natural resources and thriving oil and gas reserves, both private landowners and commercial lessors have the opportunity to engage in various types of activities related to producing and utilizing these resources. 1. Direct Consumption: One type of use involves the lessor directly consuming the produced oil or gas. This can be done by using the resources for personal heating, cooking, or even powering vehicles. This direct consumption provides an alternative and cost-effective energy source for those who have access to oil or gas on their property. 2. Energy Self-Sufficiency: For larger landowners or businesses, becoming self-sufficient in terms of energy production is an attractive option. They can utilize the produced oil or gas to power their facilities, including manufacturing processes, machinery, and equipment. By utilizing their own resources, lessors can reduce reliance on external energy sources and potentially lower their operational costs. 3. Commercial Sale: Another significant aspect of the New York oil and gas industry is the potential for commercial sale of produced resources. As a lessor, one can enter into contracts with oil and gas companies, allowing them to extract and purchase the resources from the lessor's property. This can generate a source of income for the lessor while contributing to the state's overall energy production. 4. Royalty Payments: When oil or gas is extracted from a lessor's property by a company, the lessor is entitled to royalty payments. The amount received depends on the terms agreed upon in the lease agreement. These royalties serve as a form of compensation for allowing the extraction and production activities to take place on their property. 5. Environmental Considerations: It is important to note that the New York state government and regulatory bodies have established strict regulations and guidelines regarding the use of produced oil or gas to ensure environmental sustainability and public safety. Lessors must adhere to these regulations to mitigate any potential negative impact on the environment and surrounding communities. 6. Future Opportunities: As renewable energy sources gain momentum, there is increasing interest in exploring alternative energy options, such as wind and solar power, in New York. Lessors may have the opportunity to diversify their energy portfolios by engaging in such projects and lease their land for renewable energy production. In summary, New York's use of produced oil or gas by lessors encompasses direct consumption, energy self-sufficiency, commercial sales, royalty payments, and environmental considerations. By leveraging these opportunities responsibly, lessors can play a vital role in the state's energy sector while generating income and contributing to a sustainable energy future.
