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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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
I have put the FN clause in my lease on the advice from
my attorney. I sure hope Petrohawk accepts mine.


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.
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.
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.
What is a depth clause?
John, You are wrong PetroHawk accepted it along with about eight other clauses for my proposed lease. TCB
What lawyer did you use?
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.
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
I don't know completely, attorney took care of those details, I just know we have one. We signed almost a year ago.
on our largest property we refused to sign unless there was an FN.


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