Replies to This Discussion

Permalink Reply by W Sharp on August 30, 2008 at 2:47

I agree and am still unleased. Seems to me a bit unusual that they expect to not reveal the end co.

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Permalink Reply by W Sharp on August 30, 2008 at 3:13

Something to think about, but I do like to know who I am dealing with, I wonder if anyone else has put in their addendums a clause about non-transferabilty without owners permission?

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Permalink Reply by insomniacnla on August 30, 2008 at 3:24

Chesapeake agreed to this one for my lease:

9. The rights of the Lessee hereunder shall not be assigned or subleased in whole or in part other than assignments or subleases made to direct affiliates and subsidiaries of Lessee without first obtaining the prior written consent of the Lessor. The Lessor’s consent to any assignment by the Lessee shall not relieve the Lessee herein of any duties, liabilities or obligations owed Lessor. Furthermore, any assignment or sublease of this lease made by Lessee or its assigns shall contain a specific provision providing that the new assignee/subleasee shall personally assume all of the obligations due to the Lessor imposed on the Lessee in this lease.

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Permalink Reply by W Sharp on August 30, 2008 at 15:06

insomniacnla,
Thanks, this is exactly the clause I was looking for.

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Permalink Reply by Grice on August 30, 2008 at 3:11

Something thing to consider; The O&G companies are competing for as much acreage as possible.

Could it be that the company does not want to reveal their interest to their competitors until the filing of their annual report? I am not sure if this would be an available option, but a confidentiality agreement may resolve an potential issue. If provided with a confidentiality agreement, would that alter your opinion of the intent?

From a personal perspective; If I were attempting to secure land, I would not want my competition knowing what areas I have an interest in. Not only would this prevent my competition for relocating their own interest, but also allow for an advantage in securing future locations.

I think you made the right decision by not signing. But if faced with a similar situation in the future, maybe you could inquire about a confidentiality agreement.

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Permalink Reply by W Sharp on August 30, 2008 at 15:10

Grice (T19-R15-S34)
Another good point, and if he had offered that as an option, I think I would accept it.

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Permalink Reply by Kassi on September 7, 2008 at 0:34

You can contact the companies directly and ask them if the person in question is contracted with them. A side note, do not sign a standard lease no matter who is offering it. There should be environmental, quality of life, land and land owner protections negotiated in to any lease you may sign. It is a potential life long commitment so make sure the lease you sign (if/when you do) is something you and future generations can live with.

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