Mark Leeds / XTO lease language......

This landman came in and signed some landowners in my area.  I've read his lease and some things just don't sound right.   The following bothers me the most:

Lessor's Covenants.  Lessor hereby covenants that he is seized of an indefeasible fee simple  estate in the land herein before described, together with all the underlying  oil and gas, and that he will forever warrant and defend the leasehold estate hereby demised unto the lessee against the lawful claims and demands of all persons whomsoever, and that the lessee shall have the exclusive, full, free and quiet possession of said described premises for the purposes and during the term herein set forth.  Lessor further agrees that the lessee at its option may pay and discharge, when defaulted, any taxes, mortgages, or other liens existing, levied or assessedon or againstthe above described lands, and in the  discharge of any such mortgage, tax or other lien, any royalty or rentals accruing hereunder.

 

This sounds like much more than a Special Warranty of Title.  Can these gas companies take more than just the oil and gas with a Lease?  What are your thoughts on the above paragaraph?  What is the landowner ACTUALLY signing away?

 

1. Reserve gas = 200,000 cubic feet per year.  Most are 350k and/or a monetary value.

2. No mention of the word "Gross Proceeds" and when asked, he stated XTO wouldn't allow it.

3. $20,000 total for a pad site, includes 7 acres and can take additional acreage for $3k/acre, no limit.

4. Nothing for Workers Comp or Liability Insurance, Umbrella Insurance or Business Auto or Liability Insurance.

5. Nothing stating No Pits, No Compressor or Processing, No Hazardous Materials, No Disposal or Injection Wells.

6.  Conveys all rights to drill and operate for oil and gas in ANY underlying strata....

 

Am I missing something?  The landowners that signed this lease have been involved for almost a year and signed this lease without even having their lawyer review it, and they own near 300 acres!

 

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Replies to This Discussion

Permalink Reply by BrianH on December 9, 2011 at 12:40pm

XTO said they are done for the year and would likely pick backup in early spring.

I can only assume that in light of all the acquisition in the past 4 months that it is time for Exxon, Hess and Chevron are taking an inventory of what the spent their billions on.

I’d guess a second round of leasing to fill in plots will start after the first of the year. And a frenzied third round after some area production reports.

Permalink Reply by psychosid on December 9, 2011 at 1:16pm

I wander what will happen with the leases that Mr. Leeds signed for XTO?  I've been told that there's a good possibility that XTO will be returning them to the landowners that signed them basically freeing them up to sign with someone else.  Apparently the $5000/acre and 19% royalty leases were not approved by XTO.

Permalink Reply by adam sorell on December 9, 2011 at 2:13pm

that sucks i would have been happy with 5 and 19%. i know people with less than an acre that claim they got 4900 in Blaine.  sucks. Mark seemed like cool dude. 

Permalink Reply by adam sorell on December 9, 2011 at 3:25pm

ok .but he answered his phone more than i can say for any landgroups not one of the returned a call of email. I've been scammed plenty in the valley and It ain't a deal until there's cash in my hand.

 

I got scammed by a timber man. Moron killed himself, but i got 3x what he claimed he was going to pay me. 

Lawyers are all crooks, Everyone one of them no exceptions.

Permalink Reply by time will tell on December 9, 2011 at 3:38pm

That pretty much some's things up . Doe's LA have a deal that you know of .

Permalink Reply by Bob on December 12, 2011 at 9:19am

Is the LA deal for Monroe county?

Permalink Reply by HMMMM! on December 12, 2011 at 11:18am

If it is a real deal....Who is it with! It has been said it is with a company that doesn't exist! Sounds like they are still trying to shop it????????

Permalink Reply by Bob on December 12, 2011 at 9:22am

And its for land in Monroe?

Permalink Reply by HMMMM! on December 12, 2011 at 12:29pm

Very defensive Cobra...Why? What did i state that needs eveidenced....can't get evidence of anything,can't see the lease unless you join them, that'swhy i'm on here asking questions.....sorry i learned of this discussion and joined, didn't realize you had to be a long time member to ask questions and present an opinion!!!!!! I've read through this whole discussion and the people, such as yourself have tried to hide everything...Why? What is the name of the Company the deal was with, why so many secrets?.........If things need to be kept hush-hush, explain why? If group was so successful why not tell everyone so more people can get on board?.......I would be happy just to hear who you signed with so i can check them out for myself.....Here is a question for you.....Why attack people who question the L.A. deal? Do you work for them? Do you get a side deal with them? You do nothing but put other people down, why not just provide some logical answers instead of takin the focus off your so called successful deal? Enlighten the people, such as myself, who just have questions and don't want to make the wrong decision.........

Permalink Reply by HMMMM! on December 12, 2011 at 1:31pm

My whole point what are the facts with the L.A. deal! You may not be a landman/flipper, but you sound like a lawyer or politician.....I'm not sure who is worse........You again attack people but provide NO ANSWERS......Why?  what is so scary about telling people about the great deal that was signed and the great company it was signed with?........I will say it again if it's so great why can't anyone hear about it until after they have signed a binding letter of committal?........HMMMMMMMMMMMMMMMMM!!!!!!!!!!!!!!!!!!!!!!!

Permalink Reply by HMMMM! on December 12, 2011 at 1:52pm

We landmen??? Is that what you call everyone that points out a flaw in your great deal? I have given no info, neither have you, just a bunch of smoke and mirrors. We are fast learners and what we have learned is that L.A. is headed by Lawyers and Lawyers have been giving false info longer than anyone of the landmen i've talked with! But again you have no answers, just "if your not a member it' none of your business" and  to get the answers you have to join, then you can't change your mind because you had to sign a binding letter.....and your putting other people down......really??????????.........HMMMMMMMMMMMMMMM!!!!!!!!!!!!

Permalink Reply by HMMMM! on December 12, 2011 at 2:12pm

You said the only way to get the info was join and to do that would be to sign a binding letter!!!!!!!!! Still no answers just derogatory comments.........Funny you have asked me multiple times for proof, where is the proof that it's a great deal.Just mouthpieces like you saying it is!!!!!!! You said it best..We learn quick around here!!!!!!!!!!HMMMMMMMMM!!!!!!!!!!!!!

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