Replies to This Discussion

Permalink Reply by Joe Rollins on August 26, 2012 at 3:54

I always tell them write me a check, title opinion is their due diligence

Permalink Reply by courtney oliver on August 26, 2012 at 4:46

Read your lease, there should be a 90 day clause on no work or something like that in the lease

Permalink Reply by Dash Riprock lll on August 26, 2012 at 11:31

If you attached an Exhibit A to the original lease, should be addressed in there. Non-payment of royalty should negate the lease,but when depends on the wording. Also, non-payment of a monthly shut-in fee is hopefully addressed in Ex A. If you went with standard lease, no Exhibit A, you just may need a lawyer. If the new operator wants in badly enough seems like they should be able to advise, help straighten it out, work with previous operator.

Permalink Reply by Recordman on August 26, 2012 at 11:51

Thanks for the info everyone. I assume that the new operator knows whether he can lease these mineral rights or not so I'm not worried about that but I was just curious as to the legalities. Looks like I need to read the original lease which was made around 1981! Luckily my family has kept great records over the years so it shouldn't be too difficult to find. Thanks again for the help.