Oil Gas lease- Interpretation of an addendum paragraph

The addendum to our Lease reads as follows:

"The terms contained in this addendum supplement and control the terms and provisions contained in the printed lease form to which this addendum is attached, anything to the contrary in the printed form notwithstanding."

Does that mean that if the lease states one thing and the addendum states something else, then the addendum overrides the lease?

Or is the wording such that it's a "cover all" meaning that an argument could be made for the lease or the addendum to be the overriding document?

It's certainly phrased to confuse. 

Also, when I read the addendum, it appears to be a much more balanced document in terms of give and take to the Landowner and the Oil Company then the Lease.

Views: 668

▶ Reply to This

Replies to This Discussion

Permalink Reply by Clinton44 on April 9, 2012 at 7:13pm

Looks like one for the lawyers to pick apart.. Notwithstanding being the keyword..  I would feel better if it went something like: The following agreements and provisions shall supercede the printed form of the lease to which they are attached.

not·with·stand·ing

   preposition
1.
in spite of; without being opposed or prevented by: Notwithstanding a brilliant defense, he was found guilty. She went to the game anyway, doctor's orders notwithstanding
Permalink Reply by Jack Straw on April 9, 2012 at 7:21pm

Most Leases (Addendums and Modifications) read as though they came out of the text of a book written by Lewis Carroll or Franz Kafka.

A bit sad when the reality is that a literate person needs to employ the services of an Attorney to "translate" one sentence written in legalese into comprehensible English.

 

All IMHO,

                JS

Permalink Reply by Robin Hood on April 9, 2012 at 7:37pm

There definitely awaits a special place for those lawyers who engage in this type of legal aid.

Permalink Reply by Billy Park Whyde on April 10, 2012 at 8:36am

I think some attorneys use the power of writing like a car engineer does for job security . The only difference the car engineer tries to deny us the ability to work on our care!

Permalink Reply by Frank Walker on April 10, 2012 at 8:40am

"Does that mean that if the lease states one thing and the addendum states something else, then the addendum overrides the lease?"

Yes.  That's what it means.  Lawyers will claim I'm in error and offer countless excuses.  But truth is they write stuff that way to enhance their employment prospects.  Straight up, if lawyers were forced to write such things in plain English, we would need many fewer lawyers.  

Permalink Reply by Ben Elmore on April 10, 2012 at 9:51am

Addendums are used to override the terms in the standard printed forms that are out of date or do not meet the needs of the parties any longer.  For instance, a 1/8th royalty in many printed forms was the market a long time ago.  Now, the market is much higher, so the addendum is used to change the rate.  That language you reference does mean the provisions in the addendum control over anything to the contrary in the printed form.  I think the language you quote is clear and is commonly used.  But I'm a lawyer, so maybe I'm just used to the legaleze.

Permalink Reply by Kathleen on April 10, 2012 at 10:35am
My lease does this. First we have the standard oil/gas lease that goes all the way to signature than we have exhibit A attatched which states that any changes between the two exhibit A takes over. I do not have my lease in front of me to get the exact wording.
I hope my exhibit A wins if I need it for anything, but at this point it is what it is since I signed it. It was written by a lawyer.
Permalink Reply by Robin Hood on April 10, 2012 at 8:34pm

Thanks for the info, you have just given me hope that I can get out of this lease extension and negotiate a new and mutually beneficial lease.

I'm sure it will be an uphill battle, but with all the info this site has made available, I'm ready to fight the fight. Land holders unite! Information is power! 

Permalink Reply by Dee M on April 11, 2012 at 8:02am

Does your addendum say you can get out of the lease extension?   

Permalink Reply by Robin Hood on April 11, 2012 at 6:15pm

No, but I believe it allows me to declare the illegality of the oil company's claim to the lease  in the first place, but I'll fill in the details later. 

Permalink Reply by Kathleen on April 13, 2012 at 1:22pm
I agree with you 100%. Landowners need to realize these co. Have their attorneys drawing up these contracts for a reason and not the landman they send out on their behalf. Many lawyers also will admit they only know one part of a subject and will tell you to look for a lawyer to fit your specific situation.
I'm willing to pay more to my attorney who took a piece of my lease bonus to review any language changes I get in my lease for a possible unit size change or just hand it back over to him and pay even more to handle the whole thing. I am not smart enough to know if wording I think looks almost the same really says what it says, but I bet you a dollar the oil co. Lawyer who worded it knows. We only have one chance to try and level the playing field here and a few hundred or in some cases thousands to a lawyer will pay it self back hopefully in no time once you are in a unit.

RSS

1 2
+ Add a Discussion + Add a Blog
+ Add a Photo + Add a Video

Local Groups




Stay Connected
Like Us

Follow Us

Subscribe

Join our lists

Top Content on GMS 

1 CONSOL Speaks

CONSOL Speaks
2 Top 10 list.....on how to spot a fracktivist!

Top 10 list.....on how to spot a fracktivist!
3 HOW MANY FEET/YARDS/MILES PUT YOU IN A WELL OR OUT OF A UNIT?

HOW MANY FEET/YARDS/MILES PUT YOU IN A WELL OR OUT OF A UNIT?
4 check out some of these drilling units - lateral spacing is shrinking - new techniques a "game changer"

check out some of these drilling units - lateral spacing is shrinking - new techniques a "game changer"
5 What about Halcon?

What about Halcon?

advertisements