Comment

Comment by Nelson Roe on August 26, 2011 at 1:48pm

Ok, I am not trying to slam this company either, but these guys are right.  One major issue I see with the paragraph you shared below, if it is typed in word for word as it is in the actual lease is the first five words after the initial colon(:) ... "Lessor hereby grants unto Lessor..."  you as the owner are the lessor.  I have not heard of any company out there that is allowing the landowner to have the option of renewal.  But then if you look a few lines later, it says "extend this Lease beyond the Primary Term for on additional term of five years by paying to Lessor...".  So, by the way this is written, you are granting yourself the option to extend the lease & pay yourself the additional advanced Delay Rental Payment? 

 

Please do not take offense to these comments, but it does sound like this may be a very poorly constructed lease.  I will contact you through inbox to see if you would send me a copy of a blank lease.  I would like to physically see it to see if it is indeed as poorly constructed as it sounds.  I had one of their leases a while back & it went straight to the trash can.  I had heard that they had re-drafted it, but after hearing all this, it really does not sound like the new draft is all that much better.

Comment by Jon Henderson on August 26, 2011 at 1:24pm

I'm not saying that Eclipse is not a good company, as I understand it they are. However, that section of the lease merely says that IF they haven't drilled they have the right to renew.

Comment by Ken & Jill Nehls on August 26, 2011 at 1:03pm

It doesn't mean that at all.

Comment by Jon Henderson on August 26, 2011 at 12:39pm

I'm jumping in here, but that just means IF they haven't drilled they have the right to pay you the same amount that they paid you for the first 5 year term to keep it another 5 years.

Comment by Ken & Jill Nehls on August 26, 2011 at 12:29pm

Section 18: EXTENSION OF TERM: Lessor hereby grants unto Lessor, its successors and assigns, the exclusive option and right to extend this Lease beyond the Primary Term for on additional term of five years by paying to Lessor at any time before the expiration of the Primary Term, or within 120 days following the expiration of the Primary Term, a payment equal to the Advanced Delay Rental Payment (the amount paid upon signing lease).

ADVANCED DELAY RENTAL PAYMENT: to pay the lessor within 120 days of the lease date, as pre-paid delay rentals the of $___________ per net acre.

 

Jill

Comment by scott peterson on August 26, 2011 at 11:35am

Ken & Jill, can you copy the page & upload it for us to see or even type it the verbiage word for word on here. I for one would be curious to see the wording. Thanks

Comment by Ken & Jill Nehls on August 26, 2011 at 10:49am

Michael, I'm getting my info from conversations with Eclipse field guys and the lease itself.  "THIS Ken and Jill?"  If you want a blank copy of the lease email me.

 

starghostwriter@gmail.com

Comment by michael j belaj on August 26, 2011 at 9:24am

Hellow to every one! This Ken and Jill have been putting some pretty wield stuff out here. This needs to be checked out. I have been in this business a long time and there comments just dont add up. I will do the research and follow up in a few days. Thanks Mike

Comment by scott peterson on August 26, 2011 at 9:01am

Me too Phil

Comment by Philip Brutz on August 26, 2011 at 8:50am

The more I learn the more I'm really happy that I signed up with KWGD!

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