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A retained-acreage provision is a negotiated provision in favor of the lessor. A retained-acreage provision requires the lessee to release land not assigned to a producing well (or active drilling/ reworking operations) at the end of the primary term.
To limit such outcomes, lessors often employ Pugh clauses, named after the creative Louisiana lawyer Lawrence G. Pugh, who first used such a clause in 1947 to prevent the holding of non-pooled acreage in his clients lease while only certain portions of the lease acreage were being held under pooling agreements.
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