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Permalink Reply by Bill R on October 30, 2011 at 13:33

An example of this happening would be my family leased several large tracts to Cabot O&G, yet we have had Southwestern, EXCO, EOG and others get the permits to drill wells. In each case, Cabot and the drilling company divide their shares in accordance with whatever their personal terms of agreement were and we draw our family share from in accordance with our original lease agreement with Cabot. So far, we have seen fair dealing when they do this although sometimes it takes a little longer for the 1st initial payment vs. when the leasing company is the drilling company, but that could just be the luck of the draw or something. Not sure if this holds true with the companies you have leased to and have drilling, but I would assume that in all cases, it would.

 

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Permalink Reply by Jed Clampett Bn2 on October 30, 2011 at 13:36

I know it sounds kinda silly, but someone told me that it might be a problem but it never crossed my mind. Thanks

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Permalink Reply by Skip Peel - Mineral Consultant on October 30, 2011 at 13:54

The terms of your lease are binding no matter what company drills the wells.

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Permalink Reply by Jed Clampett Bn2 on October 30, 2011 at 13:57

Thanks Skip..I thought it sounded funny

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Permalink Reply by Les Bamburg on October 30, 2011 at 17:48

Jed, Petrohawk would be the primary party responsible for making your royalty payments.  Petrohawk may contract with Chesapeake to make royalty payments on their behalf but the payments would be made in accordance with the terms of your lease agreement. 

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Permalink Reply by Jed Clampett Bn2 on October 31, 2011 at 1:13

Thats what I thought ...Thanks

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