Consent to Assign

We are being pushed by Talisman to sign a "Consent to Assign" form transferring their lease to Chesapeake. Any advice?

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Permalink Reply by Cobweb on January 28, 2013 at 11:12am

The only thing we can find states, "If the interest of either the Lessor or Lessee is assigned, all rights, duties and liabilities...shall enure to the benefit of and be binding on the assignee and the assignee's respective heirs,...and assigns."

Permalink Reply by Cobweb on January 28, 2013 at 11:58am

I just reread (skimmed) the contract. I find nothing to indicate that they need my permission to reassign nor any conditions, reasonable or otherwise, under which I cannot deny it.

Permalink Reply by JK on January 28, 2013 at 11:12am

DO NOT SIGN IT!!!!

IT gives them carte blanche to charge for things you do not want deducted!

This also takes your actual royalty percentage down.

They tried to get us to sign it and we refused.

We still get our checks.

Permalink Reply by cmorris on January 29, 2013 at 4:09am

Actually JK, none of that happens. All of the terms and conditions of your lease will stay the same if your lease is assigned to another company.  The clause "If the interest of either the Lessor or Lessee is assigned, all rights, duties and liabilities...shall enure to the benefit of and be binding on the assignee and the assignee's respective heirs,...and assigns" ensures this. Most of the time when your lease is assigned is because the Lessee might not want to participate in the well (or at least with not all of their acreage).

Permalink Reply by JK on January 29, 2013 at 1:03pm

Well then they can just release us. :-))

It's CHK!

No thanks.

Permalink Reply by tina on January 28, 2013 at 11:35am

CAN YOU ACCEPT MY FRIEND REQUEST, I WOULD LIKE TO SEND YOU A MESSAGE?

Permalink Reply by tina on January 28, 2013 at 11:37am

DO NOT SIGN IT!

Permalink Reply by time will tell on January 28, 2013 at 11:59am

DON'T ACCEPT ANY ARBITRATION CLAUSE 

Chesapeake had a arbitration clause in their lease at on time . If you go this route that's being offered take my advice !!!!!!

Permalink Reply by Jesse V. on January 29, 2013 at 9:44am

If you signed your lease with a "group" or got an addendum which referenced assignment of the lease you most likely have the right to a notice of assignment or consent of assignment. Talisman is requesting consent to assign your lease or a certain interest of the lease agreement that you entered into with Talisman.

 

In most cases it would be in your best interest to allow the assignment because 1) Talisman doesn't have enough lease hold around you to form a well unit. 2) In my area Talisman has basically discontinued nearly all operations in the Marcellus and appear to be trying to get rid of all there interest, which means they will not be doing anything with your lease. or 3) they are assigning a portion of the lease to CHK who will most likely be drilling a unit in your area and Talisman may be keeping an interest. If nothing else I'd call and try to get some clarification.

 

Keep in mind leases are assigned all the time. Who they are assigned to can be an issue sometimes, however whoever ends up with the interest in your lease will be required to abide by the terms of the lease that you signed with Talisman.

 

If Talisman is seeking consent please look into the time frame you have to respond and if you can refuse your consent. They may hold the option assign the lease anyway if your reasons are deemed unreasonable.

Permalink Reply by Larry Gander on January 30, 2013 at 3:31am

Jesse V

VERY GOOD INFORMATION.

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