How can this be legal?

I just met with an attorney in my area to discuss lease addendum language. He informed me that Chesapeake does not sign, or record any lease addendums that they draft. The company says that is not their "policy".  All that gets signed and recorded is the standard boiler plate lease. I am not really comfortable with this scenario. Can anyone shed some light on how can the lease addendum possibly be a legal document if the lessee does not sign it?

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Permalink Reply by Jim Litwinowicz on September 4, 2011 at 12:15pm
If a landman did that to me I would contact the local district attorney's office and file fraud charges.
Permalink Reply by Tinamarie S on September 1, 2011 at 9:24am
opps
Permalink Reply by Tinamarie S on September 1, 2011 at 9:19am

Becca,

 

I was also told this just two days ago, after months of dealing with an attorney.   If the attorney had been up front with me I would have not wasted time waiting 5 months to close my contract.  I can up with my own lease using addendum language and unfourtunatly land groups are far and few between in Columbiana County.  This is the reason I came up with my own lease with addendum language.  I was told this decreased my chances of getting what the group received or having my lease accepted. 

Janice Lanphere HancharickPermalink Reply by Janice Lanphere Hancharick on September 5, 2011 at 2:11pm

Anyone living in an area w/few or no land groups should consider starting one . Period.  I did this in the 4-County Region which includes Potter & McKean in PA, and Cattaraugus & Allegany in NY.  It took a great deal of work, researching the shale play action which seemed to appear rather suddenly a few years ago ... catching many unaware.  Penn State personnel provided tremendous guidance and a great deal of material, all with the intent to educate the public on all facets of this shale play.  One of the biggest lessons that came across is that there is strength in numbers for those who want a solid leasing experience that won't have a long-range negative effect on the surface or sub-surface acreage.  Members in the 4-County Group own as little as 2 AC and as much as 1,000's +.  We have developed our own lease with professional help that reaches far beyond our 2 states.  IT CAN BE DONE.

World-wide companies want what all shalers have ... OGM's.  This is not a venture for individuals to take on.  The stakes are too high.

Incidently, Penn State does help those beyond the PA borders.  Call their Marcellus Outreach Center if a knowledgeable land group is not close.  4-County has been helped tremendously  by its staff and the company representing us.

Permalink Reply by Tinamarie S on September 6, 2011 at 1:51pm

Janice,

Nice but finding a group has been difficult for me.  I am in Columbiana County.  New players would be nice and maybe the groups will form.   Currently,  I wonder if this is not a way for lawyers to make money on the smaller or left out parcels.  Now playing  with this for 6 months, which is crazy only to find out by the lawyer I am not going to get anything unless I am in a group.  Could have told me that 6 months ago.   Having created my own contract with altered language.   What is fair?   Other people have signed on their own and payed a lawyer little as $150.00 for counsel and signed contract fees.   It would be nice if other players became involved, it might save the little guy in a not so fair playing field.

Permalink Reply by Finnbear on September 6, 2011 at 2:07pm
Talk to your neighbors. Call the Farm Bureau. Call the county Extension office. Ask some local farmers what they are doing in reference to leasing. If you talk about the subject with enough people, you will find a group.
0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on December 12, 2011 at 11:50am

didn't know this discussion was here....glad it is.

My question is whether a lease is valid and secure for leaving 'no clouds' on deed records if the Lessee did not sign and date their signature....now the lease is recorded but with no signature of the Lessee (oil company) on any page of the lease.   See if I was to sell my mineral interests and the lease is not really valid without the Lessee's signature then it may present a problem....that is what I meant by 'no clouds" though it is not a deed it does have some influence over market price of real estate to future buyers and if I sold any of my royalty interests.

I found this link to a website that mentions that it really depends on what your state requires to honor the lease documents and what they are called.  You need to scroll down to the question and answer.

http://www.petroleumlandmanschool.com/newsletter.html

I have tried reading online the Pa. statutes and I suppose I will call them tom.  I do find this of interest as it appears that this is another area in a contract with the oil companies that is also one' sided.   If it is true that the contract is really not valid by law then perhaps it would be a good time to re-negotiate the contract and do a much better job.   BTW...the oil company has sold shares in this lease a couple of times already.

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