A freestone rider, also known as the Pugh Clause, is a contract provision that enables a landowner to receive royalties from oil and gas production even after the lease has ended. This clause is crucial for landowners as it guarantees continued income from their property in the event of production cessation or lease non-renewal by the oil and gas company.
In the oil and gas industry, a leaseholder who is entitled to a portion of the profits from the sale of oil or gas extracted from a specific property is referred to as a freestone rider or Pugh clause. For instance, if John owns a piece of land with oil reserves and leases it to an oil company with a freestone rider clause, he will receive a percentage of the profits from the sale of oil extracted from his land, even if the oil company drills on adjacent properties. The freestone rider clause safeguards the leaseholder’s interests in situations where the oil company drills on neighbouring properties, ensuring that they receive a share of the profits regardless of where the oil is extracted from.
Freestone Rider is a legal term used to describe a person who is not bound by any contractual obligations or restrictions and is free to make their own decisions and choices.
Yes, anyone can become a Freestone Rider as long as they are not bound by any legal agreements or contracts that restrict their freedom.
No, being a Freestone Rider does not have any legal consequences as long as you are not violating any laws or infringing on the rights of others.
Yes, a Freestone Rider can enter into contracts or agreements voluntarily. However, they are not bound by any contractual obligations unless they explicitly agree to them.
Yes, a Freestone Rider can be held liable for their actions if they engage in illegal activities or cause harm to others. They are not exempt from legal consequences.
No, a Freestone Rider cannot be restricted from engaging in any legal activities. They have the freedom to pursue their interests and make their own choices.
Yes, if a court issues a legally binding order, a Freestone Rider is obligated to comply with it like any other individual. Failure to comply may result in legal consequences.
Yes, if a Freestone Rider enters into a contract and fails to fulfill their obligations, they can be sued for breach of contract. They are not immune to legal actions.
Yes, a Freestone Rider is entitled to the same legal rights and protections as any other individual. They are not excluded from the legal system.
Yes, a person can transition from being a Freestone Rider to being bound by contractual obligations by voluntarily entering into agreements or contracts that restrict their freedom.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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