I expect that the terms of the lease with one company would be the terms that the next company would have to honor, and the lessor would also have to honor. It would be helpful to reread your lease, see just what it says, and then when the assignment / bill of sale is recorded, read it online, see if anything in there applies to your situation. I am not an attorney but that is how I understand it. A year and a half is a long time in this business, a lot can happen!
Thanks Nancy ... I need to pull out the Lease and read it. This information came up quickly, my cousin told me about it over the weekend. The affiliation with Antero I mean and the possibility that we might be part of the buy. I am assuming there is a clause in there relating to the Assignment aspect of it ... the legality of it. I am a Realtor in Phoenix. Contracts are between two parties ... not with more people brought to the party, so to speak. MH only has a Lease ... no one is Selling the mineral rights.
Thanks so much for the conversation.
Oil and gas companies sell their rights to leases to other companies all the time. It's a big part of their business, and one way that they make money. You can sell your rights in the lease to somebody else, too, if you want. The company makes sure that there's language allowing them to assign their rights (and responsibilities) in the lease to someone else.
Without actually reading the lease it's impossible to say for sure whether you have any choice about the renewal. However, having looked over hundreds of leases at this point in my career, I'm going to take a slight risk and say that the renewal is automatic. In other words, if the company wants to renew the lease they can do so at their option and without having to get permission from you. They'll just send you a check before the renewal date.
Nancy is right on with her advice, as usual. Barry D has obviously read a few leases in his time, too.
Hi Kyle ... thanks for your comments as well. I feel like Family to you all. The Lease did
already have the Option for another 5 years, with the same bonus check paid, if MH needed more time to drill. We all signed. I was curious if there is some negotiating room with the new company on the 2nd '5 year Lease'. As a whole, we got $1,000 per acre gross and then it is divided between every one, of course.
I am a Realtor in Phoenix but this O&G thing is a new arena to gain knowledge. Oh boy ...I might even get a small 'retirement pittance' if this thing ever happens. We are not expecting much. We have had the land in the family for 200 years or so. Lots of heirs. Hence, the pittance amount. Anyone actually getting paid on the wells?
They won't negotiate anything. The extension will be on the terms of the old lease or there won't be an extension at all.
It's tough to say if you'll ever get any royalties out of the lease. Tyler County is a great place to have minerals, though. They're working hard up there.
Thanks .. we don't expect much ... I'm still trying to figure out where the land is and where they might be actually drilling. There is no physical address ... just RFD 1 or whatever it is. Lots of farms are on that address. I haven't been back since I was around 10 yrs old and now I am 67. Our family group has 125 acres leased with a purpose and hopefully, they end up drilling. I think it is near Buck Run and Oil Ridge. You all have been fabulous with information. Much appreciated. I do hope Antero buys out MH since they appear to be doing something, whereas, MH has been stalled and not financially sound at the moment. Antero seems to be a real player in W VA.
Does your family own the surface as well as minerals?
Hi ... I feel like an idiot because I don't think I am responding at the places I should be. I also tried to upload a photo and did but there doesn't seem to be a Profile Edit anywhere and I don't see it like Kyle's and the others. Ok ... we own the mineral rights and I would think some of the family farms would still have the Bucks on them and they would own both the land and the minerals. Probably a mix of both.
Then Our Side of the Family, my sister, cousin and me owned another two farms at one time and they were sold years ago ... but I can't imagine our parents selling the mineral rights of those farms. How does one look up those past solds in the county records? any thoughts? I don't have the addresses. I looked up my Grandmother's death cert but it just had general delivery address. It has been difficult since all this happened 3.5 yrs ago. We were contacted 'out of the blue' and didn't realize we were 'heirs' on these parcels ... with the tiny percentages that we have ... but we will take those.
How do I find those other two sold farms from years past? You guys seem to be quite knowledgeable. Those are also around Buck Run and Sistersville in Tyler County.
Go here to the Tyler County group and i'll post a website for deeds and leases for Tyler.
Make sure you join the Tyler county group - http://gomarcellusshale.com/group/tylercountywv