Chesapeake and GulfTex both have signed leases with me. Chesapeake sent a letter stating they are turning over all leases in the Eagleford to INEOS. They are notifying me because the lease stipulates they must inform me of any assignment to a third party, They want my consent to do so. What happens if I don’t consent to the assignment to INEOS? Shouldn’t INEOS be renegotiating the lease with me?
Any insight would be appreciated,
It depends on the exact wording of your lease clause. Does it only require notice? Does it specifically require your consent? If your consent is required, then again it depends on the wording. For example, does it say that your consent may not be unreasonably withheld? Then you would need to support your refusal to consent. Generally, a lease is not renegotiated when it is assigned. You do want to know what company or companies own your lease. You may want to consult your O&G attorney about the clause.
Hey, TennisDaze thanks for your timely advice. Am I the only one in Dimmit County inquiring about the outsize role INEOS willing be playing in the county? I know there are others in the county who signed a lease with Chesapeake back in 2011 - 2015 because many were complaining on this forum about the shoddy treatment they got from Chesapeake. Is Chesapeake not selling your lease to INEOS?
I do not have minerals in Dimmit County. Just answering your question in a general way.
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