Can someone explain to me what is the Pugh clause in a lease? I have heard this term and am not familar with it.
Thank you for all information.
Louise
Louise,
Here is a simple definition pulled from the Mineral Help tab above:
A clause often added to an oil lease to limit holding non producing lands or depths beyond primary term of a lease. Also known as a Freestone rider.
If you have any amount of acreage over the normal spacing always include one. In the case of Reeves
County, with a stacked play, have one for depth also.
Mike
Louise, sometimes in Texas the Pugh Clause is called a Freestone Clause.
Thank you all for the information. It is very helpful....
How does the Pugh Clause/Freestone Rider relate to a retained acreage clause -- are they the same thing?