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.
Keyword: Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor Detailed description: Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor refers to a legal provision that grants the lessor of a property or resource the right to purchase or acquire a specified portion or all of the production derived from the property or resource. This right is typically included in lease agreements or contracts related to natural resources such as oil, gas, minerals, or real estate properties. The Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor allows the lessor to maintain some level of control over the production or development of the leased property. By reserving this right, the lessor ensures that they have the first opportunity to purchase the extracted resources or derived products before they are offered to any other potential buyers. There are different types of Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor, including: 1. Specific Allocation Right: This type of reservation allows the lessor to acquire a specific quantity or percentage of the production. For example, the lessor may reserve the right to purchase 50% of the oil or gas produced from the leased property. 2. Matching Right: With a matching right, the lessor has the option to purchase the production at the same terms and conditions offered by a third-party buyer. If another party makes an offer to purchase the production, the lessor can match that offer and acquire the production instead. 3. Area of Mutual Interest (AMI) Right: In AMI arrangements, the lessor reserves the right to purchase a share of the production obtained not only from the leased property but also from other properties within a defined geographic area. This ensures that the lessor has the chance to capitalize on the success of nearby properties. 4. Carried Interest Right: With a carried interest right, the lessor can retain a share of the production without assuming any of the associated costs. This allows the lessor to benefit from the development of the property without incurring financial obligations. The Washington Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor serves to protect the lessor's interests and ensure they receive their fair share of the resources or profits generated from the leased property. It provides the lessor with the opportunity to participate in the production activities or monetize their interest in the property, offering a valuable safeguard against potential missed opportunities or undervalued sales.
