Just received Lease
First, I'm so sorry I sent this as an email to members. I didn't see where we could start a discussion and thought this was the way to do it. I forgot to look below. Anyway, this is the letter I sent, and again, I apologize!
We just received our lease in the mail. 10 legal size pages of difficult to understand legal jargon.
We aren't signing. We haven't enough land to even consider it. We have just over 5 acres.
However, I love (NOT) a paragraph on the last page, which is entitled "Exhibit A"
The paragraph itself is entitled "Special Warranty Title". It states:
"It is understood that Lessor warrants title to said property only with respect that the title is good to the best of Lessor's knowledge and Lessee agrees that no claims will be made against Lessor pertaining to warranty of title."
Sure, for $250 an acre and 12.5% royalty we are going to sign over the title of said property. Again, NOT!
The whole 10 pages, although difficult to understand gives the Lessee so many rights to do whatever they deem necessary!
We just received our lease in the mail. 10 legal size pages of difficult to understand legal jargon.
We aren't signing. We haven't enough land to even consider it. We have just over 5 acres.
However, I love (NOT) a paragraph on the last page, which is entitled "Exhibit A"
The paragraph itself is entitled "Special Warranty Title". It states:
"It is understood that Lessor warrants title to said property only with respect that the title is good to the best of Lessor's knowledge and Lessee agrees that no claims will be made against Lessor pertaining to warranty of title."
Sure, for $250 an acre and 12.5% royalty we are going to sign over the title of said property. Again, NOT!
The whole 10 pages, although difficult to understand gives the Lessee so many rights to do whatever they deem necessary!
Views: 286
Replies to This Discussion
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Permalink Reply by T. Bamburak on
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Thanks, Sharon. I was called by "Kenyon Energy" out of Oklahoma. We've got a handful of acres in Harrison County, near Scio. We were offered $250 and 12.5% a couple of weeks ago - then I got online and started researching.
When I next spoke with them, I declined to accept, saying I wanted to think about it some more. He then told me the "good news": He could now let me have "$650 or $750", but, of course, we have to decide within the next few days.
Obviously, I'm not agreeing to anything until I get a lawyer involved! -
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Permalink Reply by Sharon M on
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We won't sign. I can understand some signing if they have a LOT of acreage. I can understand if they don't. We won't.
In reading the lease, I'm amazed how one sided it is. Upon rereading the paragraph I included in my post, I realize now it is simply saying that we are saying we have a good title, or at least I'm pretty sure that's what it's saying.
But still, the lease is so one-sided. I'm not sure the extent of use the lessee will get if we are mandatorily pooled, but even if they get full use we'll be able to say we didn't sign. We border neighbors who signed leases years ago and we also border over 2,000 acres of state land. So who knows if they will need our land or not. Hopefully not. -
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Permalink Reply by HB on
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T. Bramburak could you please post a name & phone# for Kenyon Energy. I have a couple hundred acres of vacant land in southern Harrison and would consider an offer of $750/ac. Thanks
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Permalink Reply by MonBel O & G Landowner Watchman on
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I suggest you think hard about that $750........do some reading and investigating in the Wheeling, WV area......... Oglebay Park in WHeeling just signed for $2700 per acre with a whole lot more! 250 landowners in the same vacinity just turned down $3800 per acrea two to three weeks ago and that information came from WWVA 1170 AM.
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Hello, there is a good possibility you may be misinterpreting the Special Warranty Title......I suggest you have your attorney or skilled legal person provide a good interpretation. It is good you have not jumped at the $250 per acre......the value is much, much greater and the sharks are out there eating up the landowners for much lesser fees. To the best of my knowledge, there is no protection for people who get taken at rediculous low fees, but on the other hand, I am a firm believer in our free market and freedoms which are currently be eroded into government control at a very rapid rate. Good luck to you. Think twice, act once and do not look back! Please keep your fellow Americans posted on any developements here in Ohio.......thank you! BTW, those ten pages you noted are subject to your signature and wise landowners take those contracts to an attorney for evalulation and changes which should include many limitations, addendums and reservations, including every grain of sand and mineral not included inside the scope of the gas or oil reserve being leased. This is not a game but a high dollar sale, which can be turned into a theft if you are not educated on what is under the grass on your property, all the way down to the burning earth's core.Read "ALL" of this on link below from June 2010.
http://www.farmanddairy.com/news/marcellus-shale-boom-making-its-wa... -
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Permalink Reply by Sharon M on
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Thanks RL, great article. I've bookmarked it.
Right now the lease is filed away with other business papers. We haven't enough acres to even consider an offer.
We plan on telling any land agent (if they call), that the price per acre wouldn't even pay for an attorney, so we've chosen not to sign.
We want to be able to say we haven't signed. Time will tell.
Blessings!
Sharon M -
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