Permission to Assign

Received another call from a Talisman rep attempting to get us to sign by using the argument that we would not be included in a unit and would get no royalties if we didn't.  The way we read our contract is that if work has not commenced on a unit in which we are included within five years of signing, Talisman (or their buyer) has to pay us the same figure as the initial payment or all rights revert to us. If our interpretation is correct, we will be quit happy to not be included in a unit.

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Permalink Reply by Billy Park Whyde on February 5, 2013 at 3:40pm
Perhaps we can separate the the bull from the pile. Ever hear of a PERFORMANCE BOND? Instead of lip service try for a reasonable lease that has a prepaid performance bond made payable to the lessor in case of failure to drill, fracture, and place into production a well within a time period,and depending upon acreage possible wells.
You no drill um, you no fracky, u know produce u no give lessor royalty then failure of performance under the terms of this agreement shall give lessor full right to the performance bond amount with no contest by the lessee along with termination of said lease.
0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on February 5, 2013 at 5:57pm

I like this idea.  A lot.  Good call, Billy.

Permalink Reply by Billy Park Whyde on February 5, 2013 at 8:49pm
Could be a marvel approach. If a company knew full well they would indeed be drilling and hot to produce they might be able to negotiate a lower lease bonus if the cetainity of a well or wells would be completed, not just a HBO PLOY

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