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 Finnbear on December 15, 2011 at 5:06am

What boys in Akron? Des Wertheimer? He is based in Akron.

Permalink Reply by time will tell on December 14, 2011 at 5:32pm

sounds good psycho . please do let me know and good luck .

Permalink Reply by psychosid on December 15, 2011 at 11:42am

One I put together with my children's crayons!!!!! 

 

I couldn't resist.

Permalink Reply by time will tell on December 15, 2011 at 3:53pm

Cobra I think your wrong , I personally know  a geoligist that disagrees with the dry gas statement  in most of Belmont your saying  , if fact the fairway runs threw a good part of Monroe Co . also  this person has done work for  Chesapeake and others .

He has done work for me also .

I have been wondering about the legal group that has been brought up over and over , If this firm has O-G people

on there board wouldn't that be a conflict of interest ? 

Myself being screwed 6 ways from sunday in a similar way with the O-G company < not any of the ones in this play> I have been doing my homework ,  do you think that maybe the Board of oil and gas guroos might let say hide little things in the lease to uh lean there way ? Sounds like the inmates are watching the prison . Wheres the discernment , both are profiting off of us . It's like insider trading .

All it takes is a comma or a period in the wrong place or a word that may tie your hands behind your back . They will deal with each other many times but us once .

You may need a attorney to check a attorney , dosen't sound right . 

Go with your gut feeling and it is usually right . Don't become a victim , this isn't like buying a car that you can trade , this is for life !!!

09bp5t05myjl3Permalink Reply by 09bp5t05myjl3 on December 15, 2011 at 4:19pm

H_bo I want O&G people on the board they know all the ins & outs, The Attorneys work for the Group and members therefore they are responsible to the group and our group has several Attorneys that are landowners and believe me they are in the middle of the lease & whats going on!  

 that comma or period in the wrong place opens the door to suing the attorneys for malpractice by each member, I don't think they would endanger that doing something wrong. besides we picked them based on reported integrity of the firm. I think its a good team with Attorneys, geoligists and x oil people, (thats the key EX) 

and I'm not trying stir up anything but what do you think Des is? DM oil & gas, (land acquisition) What do you think Mark Leeds is that you wanted to contact? lets not start thowing stuff at other landowners & groups.

We have enough fights ahead with the oil & gas companies! 

Permalink Reply by Bob on December 17, 2011 at 2:22pm

Hi h bo, I heard that there was another agent in the area representing XTO. 4300 acre 19%.  Any info.  Any other new O&G companies

Permalink Reply by tony blankenship on January 4, 2012 at 12:41pm

hey i was just curious if anyone has received their check from XTO recently that signed on sept 27 up at the holiday inn. just curious thanks

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