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 Oklahoma Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor, also known as the "Oklahoma Call Reservation" or the "Preferential Right to Purchase Production," is a concept in the oil and gas industry that grants certain rights to the lessor, typically the landowner or mineral owner. This reservation allows the lessor to have a call on or preferential right to purchase the production from the leased property, meaning they have the first opportunity to buy the oil, gas, or other minerals extracted from the land. This right is typically included in oil and gas leases and serves to protect the lessor's interests. By reserving this right, the lessor can ensure that they have the opportunity to participate in the profits of their mineral estate. It gives them the option to acquire the extracted resources at prevailing market prices, allowing them to benefit from any potential price increases. The Oklahoma Call Reservation can be particularly valuable in fluctuating commodity markets or areas with significant production potential. It provides the lessor with a degree of control and the ability to capitalize on any future increases in energy prices. This preferential right to purchase production is often negotiated as part of the overall lease agreement and can include certain conditions or limitations. For example, the lessor may have a limited period to exercise their call or preferential right, usually specified within the lease terms. Failure to exercise the right within the given timeframe may result in the lessor forfeiting their opportunity to purchase the production. Additionally, the terms of the reservation may outline the process and procedures for the lessor to exercise their call. This can involve providing written notice to the lessee (the company or individual extracting the resources) within a specified timeframe, expressing their intent to purchase the production at the prevailing market price. Overall, the Oklahoma Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is an important provision in oil and gas leases that allows the lessor to maintain some degree of control over their mineral estate and potentially benefit from the profits generated by the production. It is a valuable tool that safeguards the interests of the lessor while providing them with the flexibility to participate in the success of their leased property.
