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.
The Wyoming Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is a legal provision that grants certain rights to a lessor in relation to the production of natural resources on their property. This provision is commonly found in oil and gas lease agreements in the state of Wyoming. When a lessor includes the Reservation of A Call on, Or Preferential Right to Purchase Production in their lease agreement, they are essentially reserving the right to either purchase or "call" a certain portion of the production from the lessee. This means that if the lessee discovers oil or gas on the leased premises and decides to sell it, the lessor has the first opportunity to buy it before the lessee offers it to any other third party. The Wyoming Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor can be further divided into two types: 1. Right to Purchase a Specific Percentage: In this type, the lessor reserves the right to purchase a specific percentage of the production. For example, they may reserve the right to purchase 25% of the oil or gas produced from the leased premises. This allows the lessor to benefit directly from the production and potentially gain additional earnings. 2. Right to Purchase at Market Price: In this type, the lessor reserves the right to purchase the production at the current market price. This means that if the lessee receives an offer from a third party to purchase the production, the lessor can exercise their right to match that offer and purchase it themselves. This prevents the lessee from selling the production to a third party at a price lower than the market value. The Wyoming Reservation of A Call on, Or Preferential Right to Purchase Production by Lessor is an important provision for lessors as it allows them to retain control over the sale of the production and potentially gain additional profits. It provides a level of security and ensures that the lessor can participate in the economic benefits of the leased property.
