Clearing old leases

  I have been working on obtaining releases for leases which have expired. As I worked on this problem, I have come up with a few problems.

  1st problem:

Landowner signs lease with A, A subsequently  assigns the lease in its entirety to B.  A is no longer in business, and the lease terms have expired.  The lease is not held by production, and there has been no activity for 13 years. The question is, do I need a release from A?

  2nd problem:

  Landowner signs lease with A, A subsequently assigns a working  interest or royalty  interest to B. A is still in business,  B's business status is unknown. The lease's status is the same as the 1st problem. The question is, do I need a release from B, or is  his interest extinguished  upon securing a release from A?

  3rd problem:

  Landowner signs lease with A, A combines a group of leases and uses them as collateral for a line of credit with B. A mortgage of the group of leases was recorded. The lease's status is the same as the 1st problem. The question is,  do I need to get a release of the mortgage from B?

  I ask these questions, because this process can become expensive. I have had one company willing to sign a release for it's working  interest assignment. The recorder fee was $67.00. If I follow the example at a Buckeye minerals meeting, where a lease was assigned 88 times the recording fee would be $5,896.00.

  What are your thoughts?

 

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Replies to This Discussion

Permalink Reply by Ronaround on March 13, 2013 at 5:41am

Slowly does the wheels of justice move....  now its the prosecutor.

Its a never ending circle, hopefully something will come out of it for you, and the rest of us.

Everyone needs to get started if they have what most do in this county, Red tape and Assignments.

Permalink Reply by james mcmeechan on May 30, 2013 at 7:35am

  An update on the Recorder's office. I was at the recorder's today and was disappointed to learn the results of my inquiries. The Prosecutor has determined you will file and pay twice in Ashtabula County. The only change will be that you will have to include the extra verbiage on your affidavit, it will no longer be on the label.  It can only be about the money. There is no way a person could take my concerns, as relayed to the recorder, and come up with, the extra verbiage will no longer be on the label. My concerns were with filling and paying twice. These points were not even addressed on the hand out. 

  If you doubt it's about the money, let me explain. I was at the recorder's office to file my last affidavit on a 100 year old lease. I was informed  that even though the lease is recorded in an actual book and not on microfilm, I will need to rerecord  and pay to have it recorded in the margin. The Recorder said she will ask the prosecutor if a letter will do since the lease is in a book. I'm not real optimistic.  

Permalink Reply by james mcmeechan on June 20, 2013 at 8:13am

  I had my last visit with the recorder today. I was required to file and pay twice for my last affidavit. I was not really expecting them to forget the extra $56.00 fee. I was however surprised when the Recorder showed me senate bill 72. Bill 72 will codify into ORC 5301.332 the requirement for 2 separate affidavits  to be filed.  The first affidavit will be an affidavit of forfeiture, the second affidavit will be an affidavit for failure to respond. Sorry I was not able to save us any money  on this double billing process.  I'll post on the main page and let them know.

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