Ratification of a 3 year old lease? By the non property owner?
Western PA Land Services called my home, spoke with my wife.... They said they want her to sign a ratification of a 4 year old lease, drilling and fracking has already taken place (but I haven't received the first check). They have called twice and want to come to the house as soon as possible. They also want me present when they come to my home but didn't say why.
Why would they ask this? The lease is in my name only, I bought the property before we were married. When I signed with Rex, they knew the property was in my name and had me sign all the paperwork.
I think I need to get a copy of the 'ratification' and have my lawyer look at it... Has anyone else had this happen?
Larry
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Replies to This Discussion
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Permalink Reply by Dexter Green on -
PA doesn't have Dower rights. Having both spouses sign in this instance is not necessary but more than likely simply a CYA.
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Permalink Reply by Finnbear on
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Ratification changes the original lease in some way. Your job is to find out exactly what they want to change and exactly how it will affect you going forward, BEFORE you ever even consider signing it. What state are you in, OH or PA? OH is a dower rights state, and most producers will require the lease have both husband and wife listed, even if one is not named on the deed.
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Permalink Reply by Larry F on
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I'm in PA, so Dower is probably not an issue (?)
I'm just a little miffed over the whole situation. They never spoke to me, but called my home during the daytime and spoke to my wife. On the first call, she was told it was 'in case your husband dies, this will protect you' or somesuch. The second call was a voicemail saying 'please contact us for an appointment to sign the ratification we discussed'.
We will call in the morning and tell them "we sign nothing without a lawyer reading the paperwork". If nothing else I feel they should cover my legal fees. It cost me $200 to have my lawyer read the original lease, he didn't mention anything about my wife not being included in it.
Would you think there would be any recourse if we refuse to sign?
Larry
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Permalink Reply by Mike Murphy on
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simple get a copy and take it to a good attorney and get advice all these replies are just people thinking they know your situation but they don't
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Permalink Reply by Finnbear on
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make them give you a redline compare document that shows every change they made to the original lease
This is exactly what you should ask them for. It will save you time and money when you take it to a good O&G attorney (NOT a general practice attorney).
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Permalink Reply by Larry F on
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Well, they called again today, and I asked them some questions...
They responded 'we are protecting our interests, and we should have asked your wife to sign the original agreement, so we are asking for it now'. They also said they would NOT cover my legal fees, and would not offer compensation for signing. I asked what would happen if we don't sign...
He said, very carefully worded (like it was rehearsed), "We can't say what the repercussions would be, or if there would be repercussions, but we want you to sign to protect our interests". We've come a long way from the smiling landman handing out cash and good will.
He is going to mail me a copy of the document, but would not provide a line by line compare. I guess I'll wait and see the doc and then decide. But I will not sign without my lawyer reading it.
On a side note, got my first check today. Takes some of the sting out of the legal fees if I go that route.
Larry
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Larry,
I read an article in the Oil & Gas Magazine by the lawyer from Marietta Ohio who writes for them monthly. The article was titled: Ratification of An Oil And Gas Lease?
The main jist of the article was that Ratification Of A Lease was bogus, just another way for someone else to steal your dime.
The article should be on line but I couldn't find it. I'll take a look tomorrow to see if I can find it for you.
Tell those folks to PACK SAND next time they call.
You will still get your royalty check even though it will be shorted what you are owed, just like mine.
Did I mention that this kind of thing is going around? Shorting of your royalty amount that is. I knew I would.
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Larry,
Found the lawyer, Ethan Vessels, Marietta OH.
Here's a You Tube clip he did on the topic "Should You Ratify Your Lease?" It's no longer available on the Oil and Gas Magazine, but Ethan wrote the article so it's the same message.
Thanks Ethan, I like that guy. For a lawyer he seems OK.
Did I tell you to tell those folks that are calling to Pack Sand! ? I knew I did.
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Permalink Reply by Finnbear on
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Congrats on receiving your first royalty check. Invest it wisely.
You or your attorney will need to do a side by side, word for word, letter by letter comparison, (including dates) from the old lease to the new. If they're not willing to give you a redline comparison document, you should suspect they're trying to slip something into the new document that is in THEIR favor. As they told you, this is to protect THEIR interests, not yours.
Check out the reading in my other post from a few minutes ago. You MUST fully understand WHY the lessee wants you to ratify the existing lease. They are wanting to change something, and you need to know what and why. Your attorney should be able to explain to you the ramifications of the changes the lessee is asking for. If he/she cannot give you an understandable explanation, you are working with the wrong attorney. Go hire a good O&G attorney who can/will explain this to you.
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Finnbear,
If it's like our royalty check at Buck Well 1H nothing is left at the end of the month if you made 2 trips to Walmart and paid the power bill.
We would be better off if we got a percentage of the oil, gas and NGLs that are being stolen and sold them ourselves in a real open market deal.
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Permalink Reply by Finnbear on
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Some reading on "Lease Ratification" and the ramifications of doing so.
Should You Ratify Your Existing Lease?
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Finnbear,
Nice!
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