"FAVORED NATION "clause will protected you
my understanding is:
if you have a "F.N."clause in your lease, you can sign up now & if the prices goes up in the furure you will be compensated at the new higher price.
if you have a "F.N."clause in your lease, you can sign up now & if the prices goes up in the furure you will be compensated at the new higher price.
Views: 1564
Replies to This Discussion
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Permalink Reply by TCB DS3 on
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I sent it as one of my additional lease clauses to PetroHawk's landman and he accepted it along with many other clauses about two weeks ago.
I have mentioned using FN clause to other members here and received a response from one asking how I would I enforce it? Good question. TCB
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Permalink Reply by Queenie on
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I have put the FN clause in my lease on the advice from
my attorney. I sure hope Petrohawk accepts mine.
NO BANK DRAFTS PLEASE.
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Permalink Reply by John on
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No company is going to "grant" a favored nations clause. That would be the same as you buying a car from Wray Ford for $20k and the contract states if the dealer sells the same car in two months for $18,500, then they will mail you a check for the difference.
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Permalink Reply by RAY on
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If the landman refuses to accept this clause , at least get them to put in a "depth" clause.
A depth clause is fairly common .
Chesapeake will give you one I’m sure.
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Permalink Reply by RAY on
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Officially all of the oil & gas leases are recorded with $10.00 and OVC (Ten dollars and other valuable consideration)
so the lessor is faced with proving who got what during the time period the favored nations clause was in effect.
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Permalink Reply by TCB DS3 on
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John, You are wrong PetroHawk accepted it along with about eight other clauses for my proposed lease. TCB
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Permalink Reply by BeatBama on
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CHK gave my family a FN clause. It is true that CHK grants them. So hopefully the people with land next to ours will actually end up helping us out. But, yes it is a fact that CHK will grant a FN clause.
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Permalink Reply by Sam Scott on
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What exactly was the wording of the FN you had in the lease. I'd like to know for the lease coming up for me. Sam
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I don't know completely, attorney took care of those details, I just know we have one. We signed almost a year ago.
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