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.
Wisconsin Continuous Development, Retained Acreage, and Depth Limitations
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FAQ
A Pugh clause is designed to restrict the acreage that one well holds to only the acreage that is within the production unit, which is covered by that well.
Held-by-production clauses allow miners for oil, gas and minerals extend their land leases after they expire as long as the mines are still productive. Mining companies seek held-by-production clauses to lock in a lease price in potentially ?hot? areas of production.
Retained Acreage ? A clause that provides that a lease will continue after the expiration of the primary term as to a certain number of acres associated with each of the wells drilled under the lease.
A retained-acreage provision requires the lessee to release land not assigned to a producing well (or active drilling/ reworking operations) at the end of the primary term. Unlike a Pugh clause, this has nothing to do with pooling/ unitization.
An example of a Surface Area Pugh Clause: ?Production from or operations on a pooled unit or units including a portion or portions of the leased premises will maintain this Lease in force only as to the acreage included in the unit or units.