Pugh Clause

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Pugh Clause

 

  The “Pugh” clause is designed to let production from one or just a few wells hold an oil and gas lease on large acreages after the  primary term. Meaher v. Getty Oil Co., 450 So.2d 443, 446 (Ala. 1984).  The clause is named after the late Lawerence G. Pugh, Sr., a distinguished attorney who practiced in Crowley, Louisiana. Meaher, Fremaux v. Buie, 212 So.2d 148 (La. App. 1968).  A variant of the clause is:

Notwithstanding anything to the contrary herein contained, the commencement of operations for drilling, the drilling or reworking of a well, or the production of oil, gas or other mineral from any well situated on lands included within a unit embracing a portion of the leased premises and other lands not covered hereby shall serve only to maintain this lease in force as to that portion of the leased premises embraced in such unit....

Copyright 2011 by Edward G, Hawkins. All rights reserved.