Good luck in trying to change a lease once signed. I have never been able to correct major problems. I'm currently dealing with 700 acres held by a marginal producer. 1300+ pages have been recorded against this marginal producing well holding this acreage over the last 20 years. A number of companies have had interests in the well. Five of them were not at forwarded addresses from the address used in documents recording their interest in the lease at one time or another. Some of the Companies are no longer in existance. Trying to change or challendge the lease at his point by contacting the inolved companies is almost impossible, and is required if one is considering going to court to take them out for breaking lease provions etc. Sad to say the current well owner didn't do complete title work when buying the well, and so does not even know for certain his own interest in the well, and believes deep mineral interests did not come with his purchase, but reside with someone else referred to in the 1300 pages of recorded documents at the Burke county Court house. I think state law requires that acreage outside the acres pooled must evetually be developed, but if you can't contact the company who holds that portion of the lease or if it is held by multiple parties..its a nightmare. Apparently right now EOG is the sole owner of the lease in question, but I'll bet within a few short years that lease will be parcel out to a number of companyies which in turn will strip their portions of the lease into various salable packages...well that is speaking from experience...hope it helps.
Moral of the story is do it right the first time. Money spent with an experienced and qualified oil and gas attorney may be worth the money. Burke. On Oct 2, 12:25 pm, Bobcat <[EMAIL PROTECTED]> wrote: > If EOG now owns the lease, they can ammend it if they want to. > > Assuming that your lease has the usual language defining the seconcary > term, then If only one section is drilled and produces oil, then the > lease (all 4 sections) will continue so long as there is production in > commercial quantities on that one well. This could be a very long > time, longer than the primary term (5 years?) that is in the lease. > It might be worth getting an expert opinon on your lease but you > probably have it right. > > It is logical as you state that EOG would not be motivated to mod the > lease unless they get something in return. Just what would interest > them is something you would have to work out. > > When and how you approach them is also a question. You may want to > wait until EOG shows its intentions in the area and on your land(i.e > drills etc) before you give something up. > > It could be that all 4 secions will be produced (i.e 2 wells if 1280 > spacing or 4 wells if 640 spacing or whatever). In other words, you > may not need a Pugh clause depending on what ultimately happens. > Obviously having one would be better as it obligates the driller to > drill or eventually release the land. > > Bob > > On Oct 2, 5:30 am, Sweet <[EMAIL PROTECTED]> wrote: > > > > > Thank you for all the responses. I have determined that our lease > > which was originally with Ritter, Laber & Associates . . did not have > > a Pugh clause. EOG has now acquired the lease but has indicated since > > the lease was written on Ritter paper . . it is not amendable by EOG. > > We've got 4 sections on this lease so of course a well on one section > > will tie up the other 3 sections and not allow us to get any lease > > money on the other sections in a few years when the original lease > > would have expired. Has anyone had any luck negotiating to either get > > additional sections split out into separate leases or to get a Pugh > > clause added after the fact . . .? I thought perhaps if we offered to > > extend the lease for 1 year at no additional cost to them but have > > them add the Pugh clause . . .? . .would that be a fair trade? Or am > > I officially in the live and learn club now? ha ha. Thanks in > > advance for any insight you can provide . ..- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
