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.
Utah Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor In the state of Utah, a lease agreement between a lessor (landowner) and a lessee (oil and gas company) may include a special provision known as the "Utah Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor." This provision grants the lessor certain rights and privileges regarding the production and sale of natural resources on their property. Keywords: Utah, Reservation of A Call on, Preferential Right to Purchase Production, Lessor, Lease Agreement, Natural Resources, Oil and Gas Under this reservation, the lessor maintains the option to call, or purchase, a portion or all of the production from the leased property before the lessee can sell it to third parties. This right allows the lessor to have more control over the marketing and sale of the extracted resources, ensuring they receive fair compensation for the product extracted from their land. By reserving this preferential right, the lessor safeguards themselves from potential undervaluation or unfair practices by the lessee. They can actively engage in the process of negotiating the best deal for the sale of the production, including securing the most favorable prices and contractual terms. There are no specific types of Utah Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor mentioned in available resources. However, it's important to note that the inclusion of this provision can vary depending on the individual lease agreement. The terms, conditions, and extent of the call on right will be specified within the contractual agreement between the lessor and lessee. The Utah Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor should not be confused with other reservations commonly included in lease agreements, such as the right to bonus payments, rental payments, or royalties. While those reservations relate to different aspects of the lease, they may be included in conjunction with the reservation of a call on production if deemed appropriate by the parties involved. In summary, the Utah Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor empowers the landowner by providing them with the right to purchase a portion or all of the extracted resources from their property before the lessee can sell it to third parties. This reservation aims to protect the lessor from potential unfair practices and ensures they have a direct say and control over the marketing and sale of their resources.
