Preferential Right to Purchase Production
About this form
The Preferential Right to Purchase Production form allows the assignor to reserve the right to purchase or designate a purchaser for oil and other liquid hydrocarbons produced from certain properties. This legal document is essential for individuals or entities involved in the oil and gas production industry, distinguishing it from other general purchase agreements by its specific focus on hydrocarbons and rights associated with production contracts.
Main sections of this form
- Assignor's right to purchase oil and gas production.
- Notification period for exercising the right to purchase.
- Current market price determination clause.
- Provisions for designating a third-party purchaser.
- Conditions under which the optional right to purchase can be exercised.
When to use this document
This form is useful when an assignor wants to secure the right to purchase oil and gas that is produced from a specific lease or land. It is typically used in situations where a business or individual is managing production interests and wishes to maintain control over the sale of produced hydrocarbons. This ensures that the assignor can buy the production or approve a purchaser, ensuring their interests are protected.
Intended users of this form
- Oil and gas production companies.
- Landowners with production interests in oil or gas.
- Investors seeking to secure rights in hydrocarbon production.
- Legal representatives managing assignments in resource production.
Steps to complete this form
- Identify and provide the names of the assignor and assignee.
- Specify the property and leases associated with the assignment.
- Fill in the required number of days for notifications regarding exercise of the purchase right.
- Include details about the current market price for the applicable oil or gas.
- Review and sign the document to finalize the agreement.
Notarization guidance
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Not specifying the notification period clearly, leading to misunderstandings.
- Failing to update the current market price section with accurate data.
- Not providing clear identification of the lands and leases in question.
- Neglecting to keep copies of all notifications sent or received.
Benefits of completing this form online
- Convenient access and easy downloading of the form.
- Editable templates to fit specific needs without starting from scratch.
- Reliable legal language drafted by licensed attorneys.
- Quick turnaround time for completion and filing.
