Curious if anyone has an idea why these groups are leasing the area. I do not see anything east of the lake that is productive for new drilling.
WSR leased all we had in 06S-08E, 07S-08E, 07S-09E, and 07S-10E of Bryan County. But like you, I’m not seeing anything pointing to new drilling. Something has to be going on for all this leasing activity.
I do not know why they are offering leases but I am glad to see something happening here. Looking at their lease offer right now. Which brings up a question I have about leasing. Sorry for detracting from the original inquiry and I hope this is the appropriate place to raise a leasing question. The lease states that the lessor will warrant and defend the title to the mineral interests. If we as mineral owners are encourage to send a letter in lieu of a division order and refer to the court case Hull v Sun Refining, then why would we sign a lease saying that we defend the title? Isn’t the whole idea of providing a letter in lieu of the division order to avoid liability for an issue that the leasing company is responsible for and should verify in their records research? Am I misinterpreting the intent of either of these documents?
Pat,
All terms of a lease are negotiable. In fact, I do not accept this type of warranty clause. You can strike it but I take it another step and state that this lease is without warranty. Making it clear that the title opinions the operator runs should be their grounds for payment. This does not mean that I will not defend my title if need be. I once had a situation where a title opinion wrote my interest out. Purely due to the title attorney not reading the second line of a granting sentence. The land group and attorney would not respond to me, so I hired an attorney and resolved the issue. Last thing I wanted was a title opinion stating I had no interest where I did. And part of this thread, probably belongs in the Oil and Gas Leasing Topic.
Thanks Don. Were they willing to work with you on the lease terms? They seem to be very tight on information. I am in 7S 10E and my cousin is in 6S 8E.
Never sign a lease that includes a warranty. Not me anyway. Sounds like you don’t have your Exhibit 1 up to date. Get with a Oil/Gas man before you sign. You especially want a NO DEDUCTIONS clause as part of the Exhibit.
You can go to https://okcountyrecords.com/ if you want to do a review of recent OGL activity in your area.
Got it. I did exactly that with a bunch of other edits and an Addendum, no deductions, depth clause, pugh clause… And I did run it by my attorney for some input.