Our contract has an "Extention of Primary Term" clause and a "Preferential Right to Renew" clause. The "Preferential Right to Renew" clause gives the lessor an opportunity to match a "bona fide third-party offer". Does any one know of another company besides Chesapeake that may offer another lease? Our acreage is in eastern Ohio. Has any one leased that has had a preferential right to renew clause? Any info would be appreciated.
that lease is a joke, CHK took em to the bank
That's my understanding but it might be wise to have a lawyer review your lease in its entirety to make sure. I'm not sure how willing a 3rd party might be to offer a lease knowing the lessee has the right to match. Two questions, did you post only a portion of the clause? Was this originally a lease with Anschutz now held by Chesapeake?
I believe this clause allows you to accept an offer from another party. I also believe that you would have to provide to your current lessee a copy of the signed/notarized lease. But beware, this new offer/lease will be matched "in all terms and consideration" so make sure the new offer/lease contains any and all modifications you may have made to the original Anschutz lease. I would also recommend that you include in the new lease another "Preferential Right to Renew" clause. ;) Now the disclaimer: I'm not a lawyer so this is just my opinion. I am not providing any legal advice nor am I acting as an attorney for you or any user of this web site. Users of this web site should consult with their own lawyer for legal advice.
You're welcome and good luck. Check your "Friends" list. If you're willing, I'd like to be kept updated on your progress with respect to your pursuit of a fair market lease. I'll reciprocate of course.