Replies to This Discussion

Permalink Reply by Finnbear on September 15, 2011 at 11:53am

One of the main reasons for adding addendums is to counter clauses in the main lease that are unsatisfactory to the lessor. The other is to add clauses that the main lease does not cover to satisfy the lessor's requirements.

Legal counsel on ANYTHING you sign kind of goes without saying. You'd be an absolute fool to sign a potentially 6 or 7 figure business deal of any sort without some counsel.

Permalink Reply by Buck Chitawa on September 15, 2011 at 12:21pm

... or an addendum can be crafted and word-smithed to skew the agreement technically to the lessee's favor. It doesn't matter how the parties agree on clauses and terms verbally... anybody can tell you "red is red" or an "apple is an apple" and you'd agree... but if you are a signator that you agree "red is blue" or an "apple is an onion", as long as no laws are broken by that contention you will be held legally bound to your unfortunate contract.

All I am trying to say is that care needs to be taken and without legal review, I concur with you... that would be foolish (beyond foolish, negligent). I have heard people indicate that they may try to do this without legal counsel and I cringe... I really hope clearer heads prevail in those cases...

Permalink Reply by Finnbear on September 15, 2011 at 12:26pm

True. Most oil and gas companies start negotiations with the standard company lease which has already been crafted and word-smithed in heavily in favor of the company. Lots of people just sign that and the company laughs all the way to the bank. Addenda generally come into play when an educated lessor has objections to language or clauses in the original lease.