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.
South Carolina Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor: In South Carolina, a Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor refers to an agreement or provision commonly included in oil and gas leases. This agreement grants the lessor (the landowner or mineral rights' holder) a special right to purchase any production that occurs on their property before it can be sold to a third party. This provision acts as a safeguard for the lessor, ensuring that they receive the benefit of developing and profiting from the natural resources present on their land. By reserving a call on or preferential right to purchase the produced resources, the lessor can retain control over the sale of the production and potentially secure higher prices or favorable terms. Different types of South Carolina Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can include: 1. Broad Preferential Right: This type of reservation grants the lessor the first opportunity to purchase the production, typically at the prevailing market price. The lessor has the right to match any offer received from a third party and acquire the resources being produced. 2. Specific Call Right: In this scenario, the lessor reserves the right to call for a specific quantity or percentage of the production. This allows the lessor to choose how much of the production they wish to purchase, while the remaining quantity can be sold to a third party. 3. Time-limited Preferential Right: This variant of the reservation specifies a limited timeframe within which the lessor can exercise their right to purchase the production. If the lessor does not exercise their right within the specified time, the lessee (the party responsible for extracting the resources) can sell the production to any interested third party. These reservations are designed to protect the interests of the lessor by providing them an opportunity to directly benefit from the resources located on their property. It is important for both lessors and lessees to carefully review and negotiate the terms of the reservation to ensure a fair and balanced agreement that aligns with their respective interests and goals. In summary, a South Carolina Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor grants the lessor the first option to buy any production occurring on their property. The different types of reservations include broad preferential right, specific call right, and time-limited preferential right.
