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.
We’ll 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.
