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Permalink Reply by Farmhouse on August 8, 2011 at 1:47pm

My leasing company has required me to have nearly every document notarized, including the lease.

Some examples of documents are: Assignment of lease to a joint venture concern, amendment to allow increase in unit size, right of way.

After we signed and had notarized the original lease, the company sent back a copy that was counter-notarized by a notary in their home state. So I suspect having documents notarized is pretty important and common. Hope this helps.

Sorry can't guess what Chesapeake's plans are, only to say that I have heard and read that the companies do not let many leases expire. Have you had your lease reviewed by an atty.? Aside from the bonus, how are the rest of the terms. Remember, you WANT to be unitized, drilled and developed.

 

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Permalink Reply by craig on August 8, 2011 at 3:43pm

Just as Farmhouse said.

In our area CHK (Chesapeake) has the same situation, but our leases started running out recently. They are drilling as fast as they can with one rig to tie up as much acreage before the leases run out. The only caveat in our case is that the original leases with O+G, that were sold to CHK, didn't have the proper pooling clause for CHK's needs. They are having everyone sign an addendum changing this, however be careful, this clause also makes it easy for them to tie up all your acreage with just a small part in an actual unit. Things like a good tight Pugh Clause can work in this situation. The Devil is in the details, understand everything before you sign.  

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