Unintended Consequences? Could those $25,000 bonuses be rescinded?
The discussion about the class action lawsuit has gotten so large that I am afraid this question might get over looked.
My question is:
If the units are determined to be illegal and are rescinded, could the leases that were predicated on the unit sizes also be rescinded?
My question is:
If the units are determined to be illegal and are rescinded, could the leases that were predicated on the unit sizes also be rescinded?
Views: 8
Replies to This Discussion
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Permalink Reply by Bobi Carr ("parker") on
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IANAL - I am not a lawyer.
I'll move this to the other discussion, if members feel like it should be put there.
If this is not an uninteded consequence of the suit, I keep thinking of things that could be.
Lower gas prices.
Royalties held in escrow while suit is pending.
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Permalink Reply by Mac Davis on
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The lease usually does not specify anything about a particular unit or unit size. Later unit formation wouldn't affect the lease or the bonus payment.
Unit formation and size will affect royalty payments.
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Permalink Reply by The_Baron on -
Actually,
most leases do have language about units, although I am not familiar with any that would invalidate a lease or require rfund of bonus or rentals should a unit fail to be approved, just that they tend to require the mineral owners participation in units up to certain sizes. I have seen leases by some of the shale operators that require the MO to agree to voluntarily participate in Units of up to 1280 acres.
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