landowner

"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.

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landownerPermalink Reply by TCB DS3 on June 23, 2008 at 4:50
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

landownerPermalink Reply by Queenie on June 23, 2008 at 18:02
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.

Permalink Reply by John on June 23, 2008 at 2:28
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.

landownerPermalink Reply by RAY on June 23, 2008 at 2:36
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.

landownerPermalink Reply by RAY on June 23, 2008 at 4:27
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.

landownerPermalink Reply by Cathaus on June 23, 2008 at 8:09
What is a depth clause?

landownerPermalink Reply by TCB DS3 on June 23, 2008 at 4:51
John, You are wrong PetroHawk accepted it along with about eight other clauses for my proposed lease. TCB
Permalink Reply by mary on October 25, 2008 at 11:07
What lawyer did you use?
Permalink Reply by BeatBama on June 23, 2008 at 11:58
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.
Permalink Reply by Sam Scott on June 30, 2008 at 16:30
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
Permalink Reply by BeatBama on July 3, 2008 at 12:07
I don't know completely, attorney took care of those details, I just know we have one. We signed almost a year ago.
Permalink Reply by BeatBama on June 23, 2008 at 12:00
on our largest property we refused to sign unless there was an FN.

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