I have some leases that are shown on the O &g/L and one on the MEM/O&G at the county > Can anyone explain the difference
Thanks, Kenneth Myers
The instruments designated as "OGL" or "O&GL" are most likely the actual Oil & Gas Leases which have been filed for record with the county recorder. Instruments designated as "MEM OGL" or MEMO OGL" represent Memoranda of Oil & Gas Lease, which are memoranda filed of record to provide constructive notice to third parties that a lease exists. A memorandum sets forth the parties to the agreement, the date thereof, and the primary term, but generally nothing else in the way of terms, referring instead to copies of the actual lease in the possession of Lessor and Lessee.
More frequently these days, Lessees are choosing to file a Memorandum of Oil and Gas Lease rather than the Oil and Gas Lease itself because 1) As a 1-page document, the Memo is less expensive to file and achieves the same purpose; 2) the Memo provides notice of the existence of the lease the third parties without divulging the terms of the agreement, which both parties (Lessor and Lessee, but especially the Lessee) may wish to keep out of the public realm.
When the Lessee obtains a lease that is a standard Producers 88 with relatively few additional provisions, odds are good that the Lessee will file the lease itself. When the Lessee obtains a complex lease on a custom lease form, containing many pages and multiple atypical provisions, it is more likely to record a Memorandum rather than the lease itself.