Consent for assignment letter?

I recently received a letter from the  company that currently has a Clinton well on my property.  They are asking if I consent or do not consent to them assigning an interest in the deep rights to another company.   If I check does not consent to assignment does if really have any effect on there transfer?     Also is there any change to change the terms to match or be more similar to my recently signed CHK, lease on the balance of my property?

Views: 821

▶ Reply to This

Replies to This Discussion

Permalink Reply by craig on July 23, 2011 at 3:35am

This probably depends on your original lease and if/how it deals with assignments. I'd be talking to a lawyer for sure.

 

Permalink Reply by tacoma7583 on July 23, 2011 at 4:11am
It only gave me 10 days to respond so I already sent off a certified letter  to the company to buy more time.  It stated if I didn't respond   it would  be considered giving them consent.    The original lease is from 1984 so I'll have to break out the magnify glass to read the fine print
Permalink Reply by craig on July 23, 2011 at 8:09am

By the sounds of what you are saying, i'd hazard a guess that your original lease was only good to  a certain depth(to a certain formation). Now they want to assign your lease with them to someone else for the deeper gas/oil/etc. Just remember, If the gas companies want something, you should receive something in return in my opinion...and since they are in a hurry even more so...unless it benefits you tremendously.... Get a lawyer...and i am not normally one to point people towards lawyers!

 

 

Permalink Reply by Jim Litwinowicz on July 23, 2011 at 9:29am

Strange they are asking permission. I bet there is some ambiguity in the  language and the new company wants clarification.  Most old leases were short and poorly written. There was often no mention of any depth or formation and were assumed to go "the center of the earth."  But something in the language may cause hesitation by the new company.

And like craig said, if they want something, you can get something in return....like maybe some compensation or a better royalty.  The standard on old leases was 12.5% . You may be able to  get a little better.

It all depends on exactly how it is worded. You need a good O & G attorney. Like Stonecipher Law or washingtonpalawyer.com

 

Good luck

Permalink Reply by Robin Hood on July 24, 2011 at 6:16am

They are probably sending this out to all their leases in the hopes that anyone not paying attention to the current activity will just sign it and send it back. If they get 5 signatures for every hundred letters, I would call that easy money. My response would be to open negotiations with them. First research what current landowners are getting for leases and royalty and ask for the same or wait -it may get better.

Also, unless this 10 day deadline came registered or certified, it sounds even more like a scam. Take your time and be wary.

 

Permalink Reply by tacoma7583 on July 24, 2011 at 1:47pm

The letter came address to my physical address, not my mailing address.  I have 50 total acres and I just signed anew lease on 32 with dpspenn, the acreage in question that the other company would have Held by production  is 18acres my portion of a 40 acre well unit.   

  My original lease states in the addendum, that no assignment of leases without express written consent of the Lessor.   There is a very important word left out, most of these read that " Lessor's Consent not unreasonably withheld"   So I can be as difficult as i want, cause if the lease is assigned without my signature, they would be in breach of the lease.

 

This page gives me some info if they dispute my non consent.   I do have my local attorney as a consultant if the going gets tough and to read and new leases.  the below isnt my attoney

http://www.hhmlaw.com/blog/oil-gas-leases-lessor-consent-not-unreas...

 

Permalink Reply by Robin Jackson on July 27, 2011 at 8:01am

Did you say your lease was from 1984? That is really old, has it had extensions up till now??

 

Permalink Reply by tacoma7583 on July 27, 2011 at 9:02am
the lease from 1984 has a well that still is producing.
Permalink Reply by tacoma7583 on August 8, 2011 at 12:44pm

Just an update,  they received my certified letter and I made a follow up call.   They are not currently negotiating on these consent to assign leases, at least that's what the person from there their land department said.   I tried to get details of the transaction, but they wouldn't talk.    Ill keep an eye on the recorders office to make sure they dont try to sneak it through.

         This all my letter says.     Enervest has agreed to sell and CHK has agreed to purchase, an undivided 50% of the assignors right, title and interest.    This is for Northeast ohio,  formerly CGAS and Belden and Blake properties,

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service