Thanks farmbrad. I called them today and informed them that my land wasn't leased. They said they weren't working for any specific O&G. I would be crazy to do anything without a lease. I am hoping Encana or Devon will do some more leasing down our way. Something about that area is drawing some attention. Thanks for the reply.
i don't think my guy or gal going to win........ i don't think folks knows what is ahead if the other guy gets in. they better think? i do hope for the best exspecialy if our man gets in............. take care
Here's the way my Paragraph 10 starts. I've also seen it in Devon leases in Haynesville and Barnett shale plays.
"The breach by lessee of any obligation arising hereunder shall not work a forfeiture or termination of this lease, nor cause a termination or reversion of the estate created hereby nor be grounds for cancellation hereof in whole or in part."
According to my attorney, Devon has used this language on several of his clients in the Barnett shale to tie up their minerals in a perpetual lease beyond the stated terms of the lease in the event they can't get a rig in time to drill before it expires. Since they are laying out such massive amounts for bonus money, knowing there's no way they can drill all the acreage they lockup and take off the market and away from their competitors, they don't want to be forced to just walk away from their investments after three years. I'll be calling Encana to see what they can do. Thanks for your information and Merry Christmas.
Thanks Farmbrad. Encana did call me and told me our land was not in their Buy Zone at this time. The man was extremely nice and indicated we still had an excellent chance of leasing. Several other companies have our land information. We will just wait and see what happens. Congrats on your signing.
Hey Farmbrad, sounds good. Can you tell us terms? Don't need to be specific, but is it north or south of $5,000/acre. That's what EOG has offered us in the area but the lease language is not good. Was it a clean lease without the "no forfeiture" language a lot of companies are inserting at paragraph 10 of the lease?
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More