My siblings & I received an email from our oil/gas producer saying, “In order to update from title suspense, we are requesting that your leases be ratified.” They asked to verify name & address. They also said, “ We appreciate your patience with us as we work through this matter and cleaning up the title issue.”
We’ve emailed asking for reason of request & if there is a deadline?
Any suggestions what this request may be?
I am always very cautious about requests to ratify a lease. One must be very careful that terms are not being changed on the clauses. Ask them for a copy of the lease and a draft of what they want you sign. Go through it word for word. They may be telling you one thing, but trying to get away with something else. Might be good to get an attorney to take a look at it. The title suspense is wording is a bit of a red flag to me. Could be a simple thing as a misspelled word or it might be something more.
Is there normally a deadline to respond?
Thank you Ms Barnes! I appreciate your quick response.
They would like to have the issue resolved as soon as possible. So would you if royalties are involved. Ask them very specifically what they are trying to remedy. It might be a typo or an incorrect address. If it is something within the body of the lease and they are trying to change language such as royalty or timing or something significant in a clause, then I push back.
Just to be clear, a relative of yours signed a lease years ago, thats been in production since the lease was signed and the monies were held in suspense due to lack of doccuments filed on the estate? OR did you actually sign a lease as well when the estate wasnt settled? A ratification of a lease should not change the terms of the lease and a simple 1 page document, but if its an older lease thats leased at 1/8th, Id at least ask if you can ratify it at 3/16ths.
Do you have a section, township and range? Current or pending activity on the lease may have precipitated the question.
it’s me & 2 siblings; well ceased production in approx July 2024; they said due to fracking nearby. Last Nov they said should see royalty check last Nov/Dec 2024; still nothing. Now received email last week about ratification. They stated status of well is active, but not producing due to fracking.
Well name: CGA 5N1W 7 1HX
CGA 5N-1W 7 is back online although at somewhat lower rates. Has been online since July. No oil production during June-August for fracking of the McPherson wells. Low gas production in June-Aug. Lime Rock is the operator.
Get better clarity before you sign anything. You are about to have the McPherson wells, so make sure they are not trying to change the lease.
Is there production on well beep beep?
If royalty checks are in “suspense” pending ratification lease agreement, can we ask for interest earned on those monies?
Ms Barnes, can u review production for any McPherson Wells (#2, #3, #4) near CGA?
I appreciate the advisement! Just sent them a list of requests/questions.
Are there deadlines attached to ratifications? I’ve asked & Limerock hasn’t answered the question.
You can look for the McPherson production once they are posted on the OTC site. Type McPherson MU into the Lease Name option. You will see the three names. Click on the Blue PUN number and the well will open up. The Production History tab at the top will give you the last few months of production if available.
You can ask for interest but it will likely be less than the 12% due to your title issue.
Are there deadlines to sign a ratification lease?
Not sure. Ask the agent if the problem is with the lease or with the division order for the new wells. Were you already getting paid on the parent well in section 7? Was that lease signed by another ancestor? You said you inherited, so not sure you could sign a ratification of someone else’s lease. Did you probate the will? Or if no will, go through the intestate process? Something just sounds odd here. More information needs to be clarified.
Yes, we were getting pd on parent well CGA.
We inherited CGA from a deceased parent.
