Consent to assign lease

Anyone have any comments on the following letter:

 

Gentlemen:

Pursuant

to an agreement by and between Chesapeake Exploration, L.L,C. ("Chesapeake"), EnerVest Energy

institutional

Fund lX, 1.P., EnerVest Energy Institutional Fund lX-Wl, L.P., EnerVest Energy Institutional Fund

Xl-A,

1.P., EnerVest Energy Institutional Fund Xl-Wl, 1.P., CGAS Properties,1.P., Belden and Blake Corporation

{coliectively "EnerVest"},

Chesapeake and EnerVest, collectively Sellers, and TOTAL F&p USA. lNC. {"Total"},

as

Buyer, (i) Chesapeake intends to assign an undivided twenty-five i25%) percent of all of its interest in the

above-referenced lease

{the "Lease"); and {ii) EnerVest intends to assign an undivided twenty-five \25%t

percent

of all of its interest in the Lease, insofar and only insofar as to all rights below the stratigraphic

equivalent of

300 feet beiow the top of the Queenston Formation, to Total. These assignments do not affect

the terms

of the Lease.

ln this

regarci, Chesapeake and EnerVest respectfully request your consent to the respective assignments to

Total,

Please evidence your consent by signing in the space provided below and returning by facsimile to

405-849-8138

within 15 days of receipt. Failure to respond within 15 days of receipt will be deemed consent

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Replies to This Discussion

Permalink Reply by Billy Park Whyde on January 20, 2012 at 6:34am

I would fax a big NO I DO NOT CONSENT and send a certified letter to that effect

Permalink Reply by mark ayers on January 20, 2012 at 11:44am

why?

Permalink Reply by Billy Park Whyde on January 20, 2012 at 12:10pm

 I will sign with who I trust as I believe all landowners should have in mind. I do not care for that power to be given to another party. The reason why some land owners desire the non reassignment clause in the lease agreement. Renegotiate the lease with whoever you want, but put yourself in control. The lease flipping only takes money from our pockets. 

Permalink Reply by mark ayers on January 20, 2012 at 12:32pm

Good answer but it does not apply here... what is done is done, I don't think you can fight this..  

Permalink Reply by Mmmarkkk on January 25, 2012 at 5:48am

Why on God's green earth would you fight this?  CHK has retained operatorship and the deal with Total will allow them to get your lease drilled faster.  People who jump to this reaction are a pain in the arse.  This is a good thing, so why fight it?

 

If you fail to consent, depending on your lease language, they may still do what they want but leave your lease as is which means CHK still operates and nothing for you changes.  Or they could claim that you are "unreasonably withholding consent" which will make your lawyer rich.

Permalink Reply by Paul Martinelli on January 25, 2012 at 7:10am

I agree...this is just an assignment between CHK and Total......

Permalink Reply by Billy Park Whyde on January 20, 2012 at 1:42pm

If you responded with a NO and it came to further litigation down the road you might be in standing of a objection in court. But to do nothing with no record of your objection you have nothing. Besides it puts them on notice you did not appreciate it!

Permalink Reply by Fuego Jones on January 20, 2012 at 1:45pm
What if the lease states that "the lessee must request and obtain lessor's written approval to assign, which consent shall not be unreasonably withheld". This is how most of the Patriot Energy leases were worded, and were assigned to Chesapeake, even after letters against the assignment were mailed to Patriot.
0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 20, 2012 at 5:30pm

Paul, was that letter sent to you for your signature?    or are you just a receipient of a copy of their deal regarding your lease with Chesapeake?   or did you find that online at landex.com or in your county record?

 

many of the leases that have been done in the past in the Pa area do not necessarily have any notice for the Lessor if any 'assign' is done by sale/deed and recorded.   That is also why we have several times discussed at this forum about making a provision on the lease for the Lessor to be notified, for approval or acknowledgement (don't know if approval would be an option as many times the deal would be over the understanding of the Lessor...as in knowing the workings of the history of the investment group, etc.), and/or a financial gain at the time of the assigns by the Lessor.

Permalink Reply by Paul Martinelli on January 24, 2012 at 7:01am

This was the aactual letter sent to a friend of mine pertaining to land they have in Tusc. County....requesting thier signature.

 

I do not know the terms of the existing lease...I am assuming the land is HBP.

 

Thanks

Permalink Reply by Mmmarkkk on January 25, 2012 at 5:50am

Read it again, they are assigning only a 25% interest in the lease, not the entire lease.

 

And if you don't know who Total is, you maight want to do a bit of research.   They are one of the largets oil and gas companies in the world, hq'd in France with operations on most every continent.  And they will not be the operator, CHK will be.

0l1a6laz7smpfPermalink Reply by 0l1a6laz7smpf on January 24, 2012 at 1:28pm

Tacoma,

item 8 is why they need your approval.   pls reply on email to me.

you also need to reply in writing to you with a verified receipt that you did (send with request for signature, certified) ...don't just rely on telling an agent no over the telephone.   very important...in fact make sure you send with the very best return receipt and postmark date.

as far as difference in working interest....far as I know that means that they are keeping control of the drilling activities, pulling the permits, etc.  Someone else here may know the lingo better.

Having someone help you now is important and most likely like Jed said you may be in a good position to renegotiate a new lease. 

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