Abstract Issues- Paid on lease

 We had a lease we were paid a lot of money on. The lease expired. We are dealing with another company that has discovered supposed title issue. The history of this property goes back forever. How comfortable are anyone with title abstracts. The original lease we were told had at least 6 people review it before payment with a strong hold harmless. What experiences have people had in regard to this.

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0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 19, 2013 at 5:02am

The fact that you were paid the first time means title was good in their opinion.  This new company that you're dealing with may have a different opinion of an existing issue that the first company disregarded.  Due diligence is a little bit subjective and two lawyers can look at the same title issue and render different opinions.  Try to get more details from this new company and see what they think needs to be done to cure the title issue.

There is an alternative theory that I should offer just as "what if" scenario.  Who was the first company?  Were they reputable and well-known or were they something altogether different?  Was your first lease sold?  Did the first company sell its leases but leave yours out from the sale, indicating a title issue was discovered by the buyer?  If you can answer some of these questions many of us here on GMS may be able to advise you better.

Permalink Reply by Henry Edwards on December 19, 2013 at 5:38am

Atlas was first company who had 6 people review it now owned by Chevron-Chevron bought it and even offered a top lease but we did not accept after initial term was close to expiring.. EQT is the second company and they are the ones questioning things. Chevron of course owns the title opinion and research and will not part with it. We are currently clearing the matter. I was just wondering how a company could make a mistake so obvious based on what we are seeing.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on December 19, 2013 at 6:23am

Again, it's possible that Atlas and Chevron didn't miss it, rather their due diligence team didn't think it was an issue worth curing.  Uncommon, but it happens.

Permalink Reply by Henry Edwards on December 19, 2013 at 8:22am

These are so obvious that there would be no reason to even every contact us much less write a huge check. So something must be missing.

Permalink Reply by rmc on December 20, 2013 at 1:07am

Is it possible that Chevron failed to file a release of the expired lease ?

Permalink Reply by Henry Edwards on December 20, 2013 at 5:23am

That have not filed the release but thats not the issue.

Permalink Reply by Henry Edwards on December 20, 2013 at 5:26am

Many issues which obviously got cleared up in the original title opinion by Atlas. We have surface deed issues, Will issues, probate issues, etc etc etc. Obviously they found the path through all of these and we will find it and are finding it but its expensive and time consuming.

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