Most Favored Nations Clause: Something To Consider

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A recent Texas appellate court decision outlines the mechanics of a "most favored nations clause" in an oil and gas lease. These clauses require that a mineral lessor treat the lessee as well as any other lessee in a defined area. Such clauses may be beneficial to the landowner in an oil and gas lease and should at least be considered during negotiations.

This article was first published at the Texas Agriculture Law Blog: http://agrilife.org/texasaglaw

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Tiffany Dowell Lashmet, Texas A&M Agrilife Extension | Attorney Advertising

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