Ratification of a 3 year old lease? By the non property owner?

Western PA Land Services called my home, spoke with my wife....  They said they want her to sign a ratification of a 4 year old lease, drilling and fracking has already taken place (but I haven't received the first check). They have called twice and want to come to the house as soon as possible. They also want me present when they come to my home but didn't say why.

Why would they ask this? The lease is in my name only, I bought the property before we were married. When I signed with Rex, they knew the property was in my name and had me sign all the paperwork.

I think I need to get a copy of the 'ratification' and have my lawyer look at it...  Has anyone else had this happen?

Larry

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Permalink Reply by Finnbear on September 26, 2014 at 3:32am

A couple questions to consider.

Were you married when you signed the lease?

What do you want to happen to the royalty income in the event of your death?

Would you want it to go directly to your wife, or elsewhere?

If to your wife, have you protected it from probate since she's not listed on the lease?

Do you not want her to share in the royalties at all?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 26, 2014 at 5:34am

Finnbear,

     I don't think the landmen are really interested in what's right for Larry and his Wife, they are just trying to get their foot in the door and change his lease. I'm sure they will get a bonus if Larry signs their documents.

And, needing Larry at home means they want to have the document signed now, so there is no time to think about it or take it to their lawyer. Most people don't know how to handle a thief since our society doesn't approach that topic, that's why the oil and gas industry has taken advantage of us for over 100 year.

Some landmen have Notary Rights so they legally bind you to shooting yourself in the foot when signing.

This is a visit from landmen, not the preacher, so you have to expect that they want something that belongs to you and treat them accordingly. Prove me wrong by signing one of their documents then let me know how your position in life improved or NOT!

The used car dealer tells me stories to influence me to buy a lemon on his lot but he doesn't pick pocket me beyond the purchase of a bad vehicle. A landman is capable of doing real financial harm.

By the way there are laws that can be used to correct the behavior of a landman if he story tells, so don't be afraid to use them. Let me know if you can't find the laws, I've seen a few state's laws but have never listed them by state.

Permalink Reply by Dexter Green on September 26, 2014 at 5:53am

Gee Ron, tell us how you really feel.  Never mind that this situation is pretty common, nor that it doesn't sound like anybody is changing the lease, it's probably best to just be cynical and make everyone skeptical of this rather normal curative process. 

Permalink Reply by Finnbear on September 26, 2014 at 5:58am

If PA is not a dower rights state, why is this necessary?

Permalink Reply by Dexter Green on September 26, 2014 at 6:19am

CYA.  Period.  Get all the names on paper.  It gives the company cover and it costs them nothing.  No reason not to do it.

Permalink Reply by Dexter Green on September 26, 2014 at 6:44am

I agree Larry needs to be smart about this.  Actually, it'd be easier for him to just get her to sign a document releasing any interest in the lease.  That way it could be drawn up by his lawyer and he wouldn't have to deal with the company at all. 

P.S. The landman is doing the job he was told to do.  There's no need to get so aggressive with these guys.  Most of them are just trying to scratch out a living like the rest of us.

Permalink Reply by Dexter Green on September 26, 2014 at 8:23am

He's a contractor.  He's been given only what the company wants him to have.  He needs to listen to the landowner's concerns and then figure out how to get them addressed.  But at some point he's simply the guy in between who's trying to make a living and the two interested parties are just using him to shield themselves.

Permalink Reply by Utica Watcher on September 26, 2014 at 8:29am

This discussion is intriguing to me, aside from some of the jaded comments posted by Mr. Hale in this discussion.

My question is this though:  how does a lease ratification possibly give 50% rights in the title of the property to an individual who is signing to release "dower" interest?  To my non-lawyer mind, wouldn't a separate deed need to be drafted up between husband/wife conveying 50% interest in the property and signed by the party that has 100% interest prior to marriage?

Thanks for any info and your thoughts.

Permalink Reply by Dexter Green on September 26, 2014 at 8:44am

" how does a lease ratification possibly give 50% rights in the title of the property to an individual who is signing to release "dower" interest?"

Well that's not what they're signing.  A ratification in this specific case is likely going to be a one page document where the wife acknowledges the lease exists and that she's on board with it.

Permalink Reply by Larry F on September 26, 2014 at 10:36am

OK...  Received the document (they overnighted it). 

It's titled 'Ratification', but it's only a one page document, asking only for my wife's signature (Dexter, you're right). It references the original lease and requests her to abide by it. I see now why they didn't do a 'line by line', as there are no changes, other than her agreeing to the terms I signed. I'm not sure why they wanted me there, not even a place for my signature.

I'm surprised that nobody else in the forum has had this happen, but maybe it has and they just don't read here.

My lawyer will probably charge 50-75 to read one page, so I may just do that and have her sign it 

Maybe I over-reacted...  Companies that have millions of $$ and teams of lawyers tend to do that to me. I signed a real estate document once at Howard Hanna that could have cost me thousands, and I decided never to sign anything without my lawyer reading it first.

Larry.  

Permalink Reply by Utica Watcher on September 27, 2014 at 5:25am

My point exactly Dexter.  It seems that people are fear mongering that by signing a simple ratification that the husband is giving 50% interest in the property to the wife.  That is not the case at all...it's simply a dower clarification.

A deed would be needed to truly convey interest in the property to the wife was my point.  I just felt that people were be unnecessarily cynical of what the ratification document was for. 

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on September 27, 2014 at 11:40am

Dexter,

      OK, I'm sorry I'm Jaded, i do like the color though, I'm overly sensitive about what has happened in the area with leases and pipelines, and I know what will happen in WV and Kentucky with all the honest people out there that have never experienced theft up close and personal.

By the way, no one has taken advantage of me, but plenty have shown up wanting leases and pipeline ROW signatures. Some of us take it personal when others are being stolen from and no one cares.

Mark my words we will all experience the theft soon enough when the royalty checks arrive. I'll just shake my head and say I told you so. Til then, call me the Jaded One!   Larry, let us know how that signature works out for you, and don't make a habit of signing things, the Pipeline Row will eat your lunch.

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