Replies to This Discussion

Permalink Reply by Linda Whatley on November 4, 2010 at 5:20

SueBaby,

It's a good idea to take a look at the old lease..... maybe, just maybe it can be broken for non-production? ..... I was able to get out of one because of some restrictive terms in the origional lease that related to production.

Good luck!

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Permalink Reply by SueBaby on November 4, 2010 at 7:22

I may have found something of interest.... In keeping what you guys have been preaching.... read, read, read......
I found this... in the division order they sent dated 10/04/2010 it says
UNIT ACRED 970.078589. The application notice dated nov. 3 2008 says
combining section 18 and 17 into a 960 acre unit.. now i know the acreage may change a bit, but the interesting thing i noticed in Reading my division order again , it says
LEGAL Description E/2 section 18 & Section 17-16N - 16W

Where on earth did this section 16w get into the mix

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Permalink Reply by Linda Whatley on November 4, 2010 at 7:28

SueBaby,

That means the east half of Section 18 (320 acres) & all of Section 17 (640 acres) in Township 16N Range 16W.

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Permalink Reply by Linda Whatley on November 4, 2010 at 7:51

How many acres do you have in the unit?

Permalink Reply by The_Baron on November 4, 2010 at 7:59

The description is a little odd.

Section 18 is a Fractional section, i.e. less than 640 acres. in fact it is about half a standard section. Furthermore, The unit HA RA SUD covers all of Section 17 and all of Section 18, not just the E/2 of 18. the total acres of 970.078589 is probally corresct for the total, as long as all of Section 18 is included.

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Permalink Reply by SueBaby on November 4, 2010 at 10:51

Thanks so much . I will request the info from CHK. and see what we get
I will advise.
thanks again

Permalink Reply by Mac Davis on November 4, 2010 at 11:18

Also, you may want to request that Greystone file a release, just to clear up your title.

Good advice, but only after you've given up completely on the Greystone lease.

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Permalink Reply by SueBaby on November 4, 2010 at 17:26

Information noted. Thanks
If i may ask one more question.......... If we have Greystone file a release what status will that put us in.
Will we be an Unleased mineral owner . but still only be able to get 1/6 royalty.

Should we then try to get a new lease signed with CHK.

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Permalink Reply by The_Baron on November 5, 2010 at 4:08

Sue:

If the original lease is good, then the greystone lease is worthless and meaningless as you had no right to legally lease at the time. It is kinda like if I sold you the jimmie Davis Bridge., I don't own it, i could sell it to you, record a deed, but in the end it is meaningless.

There are two posibilities here
1) the older lease is still valid & the Greystone lease is bogus
2) the older lease does not cover your lands (due to non-production, pugh clause or somthing) & the greystone lease is valid.

For #2 to be true, and I speak generally I am not a lawyer, and I am not familiar with you specific situation, The older lease would need to a release of your lands, to clean up title for the Greystone lease to be valid. A attorney or landman would first look at the older lease, determine if it was a valid lease when it was taken, and then work forward to determine if it has not expired. My guess is CHK has done this and is most likely fairly confident that the older lease prevails. That doesn't mean it is not worth looking into, and without knowing how many acres are at stake it is irresponsible of me to advise you to hire a lawyer, as the cost benifit may not be there for an acre or two, but could easily be there for forty acres, also without knowing the specifics, I can not copmment on the odds of you overturning the old lease.

In any case you would not be UMI, as you would be covered by one of the two leases. Unless of course you could break both (most likely a long shot, and maybe not a course of action worth pursuing anyways).

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Permalink Reply by The_Baron on November 5, 2010 at 3:57

I don't know, I would gladly trade a 3/16 royalty in the greystone lease for a 1/4. even if it meant signing a no bonus lease.

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Permalink Reply by Linda Whatley on November 5, 2010 at 9:19

SueBaby,

Accept my friend request so I can send you an email message.

Thanks,
Linda

Permalink Reply by SueBaby on November 5, 2010 at 13:54

Linda < I am waiting on your email

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