Imputed Pugh Clause

Has anyone ever been offered a Pugh Clause lease on unproductive acreage currently HBP?

 Update new information has been located:

https://www.mcdonaldhopkins.com/insights/news/Will-Ohio-courts-impu...

In Burke v. Excalibur Exploration, Ohio’s Eleventh District held that the nonproducing horizontal portions of leased lands are released at the conclusion of the primary term regardless of whether the lease contains a Pugh Clause. (11th Dist. Ashtabula No. 2016-A-0041, 2017-Ohio-999) The lessors in Burke sought to have any acreage which was not included in a drilling unit released from the lease. The court determined that the lack of language in the lease specifying that production from any portion of the lands will hold the lease for the entirety of lands evidenced that the parties did not intend such an effect. Thus, rather than require a Pugh Clause, the Eleventh District appears to find that a horizontal Pugh Clause is imputed absent language to the contrary.

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LandownerPermalink Reply by Jim Pollock on August 29, 2026 at 1:04am

Generally if your land is HPB, you cant get a new lease unless the old lease for a specific depth..


LandownerPermalink Reply by Brian Day on August 29, 2026 at 2:38am

Look closely at your lease.  Does it state anywhere that you can demand surrender of any acres not specifically included in a unit, horizontally or vertically, near the expiration of your lease term?  If so, send a certified or registered letter demanding so to your leasing company and keep the copies and postal receiving acknowledgement safe.

 

Permalink Reply by Magnetron12 on August 29, 2026 at 3:52am

Thanks

Permalink Reply by Magnetron12 on September 1, 2026 at 7:56am

Thanks for the information

Permalink Reply by Magnetron12 on September 5, 2026 at 8:09am

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