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Author Topic: You want Addendums.....You got em!!!!  (Read 23510 times)

thatguy

  • Guest
You want Addendums.....You got em!!!!
« on: September 18, 2008, 08:44:26 PM »
Lets see if this works.  If it does it should be a list of very useful addendums for you in negotiating your leases.  I am a landman so they probably wont like it if they know its out there.  Have fun!!


http://writer.zoho.com/public/crroyalflush/Addendum-List/script

lagomia

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #1 on: September 18, 2008, 08:47:12 PM »
suggest to sticky this thread

digger23d

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #2 on: September 19, 2008, 06:06:35 AM »
I would advise against the Well Sales clause (3.1).  I have heard horror stories about wells that were to be shut down because they were no longer productive enough for a company.  The company sold the well to the landowner whether because there was free gas going to the house or just because the landowner could sell what was left.  Then, in a couple of years the DEP came by and said, "time to plug this well".  In some cases I was told landowners had to pay tens of thousands of dollars to do this plus fines if delayed.

Joe Crawford

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #3 on: November 03, 2008, 02:39:32 PM »
Thatguy - Thanks for the addendum clauses, they are turning out be very handy.  I do have one
question though, in section 13.1 it says:


?13.1 The mechanic?s liens, if any, placed on the leased premises by Lessee, Lessee?s contractors and/or subcontractors shall not extend to the Lessor interest or any surface or other fee interest of the Lessor in the leased premises.?

Should the ?or any surface? be replaced with ?in any surface??  In other words, was this a typing error, or am I reading it all wrong?

Digger ? Good point on the Well Sales clause. Doesn?t the same think hold true for Section 6.2 ?  Could this not also be construed as refering to the well as well?  Looks to me like 6.2 should also have a sentence stating that this provision does not remove Lessee from requirements under the laws of xxxxx state concerning well abandonment and well plugging.   Thanks?

Joe


thatguy

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #4 on: November 06, 2008, 04:06:21 PM »
Thatguy - Thanks for the addendum clauses, they are turning out be very handy.  I do have one
question though, in section 13.1 it says:


?13.1 The mechanic?s liens, if any, placed on the leased premises by Lessee, Lessee?s contractors and/or subcontractors shall not extend to the Lessor interest or any surface or other fee interest of the Lessor in the leased premises.?

Should the ?or any surface? be replaced with ?in any surface??  In other words, was this a typing error, or am I reading it all wrong?

Digger ? Good point on the Well Sales clause. Doesn?t the same think hold true for Section 6.2 ?  Could this not also be construed as refering to the well as well?  Looks to me like 6.2 should also have a sentence stating that this provision does not remove Lessee from requirements under the laws of xxxxx state concerning well abandonment and well plugging.   Thanks?

Joe



I think you just read it wrong, it is intended to say that no mechanics liens shall extend to the Lessor's interest, any surface interest or other fee interest.  for whatever reason that is the way the lawyers drafted it.

Joe Crawford

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #5 on: November 07, 2008, 07:58:13 AM »
Thanks.... guess I was just reading it wrong.

Joe

thomascb6229

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #6 on: January 26, 2010, 06:45:39 PM »
Is there an updated page of addenda?  The lease language is continuously changing, and new things are constantly being added to leases by landowners presently dealing with companies.  Is there a set place we can view and familiarize ourselves with these new addenda?

Thanks.
Caleb

ghrit

  • Posts: 3255
  • Member since October 05, 2008
Re: You want Addendums.....You got em!!!!
« Reply #7 on: January 30, 2010, 01:01:26 PM »
Here is my latest index of addenda.  Comments welcome, especially if I've left anything out.  This is not intended to apply across the board, it is just a talking point for mix and match as needed.  Putting it into legal language is left for another time, and I really don't think a company will buy into all of them.


1.   General
Lessee shall present the lease and addendum to the Lessor for signature accompanied with a non-refundable deposit of one tenth (1/10) of the agreed upon prepaid lease amount (bonus), contingent on Lessor?s execution/acceptance of the lease by signature.  In the event that Lessee?s subsequent activities determines that Lessee does not go forward with the lease, Lessor will not be obligated to return the deposit.
This Addendum is attached to and forms part of the Lease dated                              , 20xx
from                                                           , Lessor, to _______________., Lessee.

(a)   In the event of a conflict between a provision contained in this Addendum and a provision contained in the Lease, the provision contained in this Addendum prevails.
(b)   Unless expressly indicated otherwise, all capitalized words used in this Addendum have the same meaning attributed to them in the Lease.
(c)   The Lease continues in full force and effect and is amended only to the extent necessary to give force and effect to this Addendum and the Lease is ratified, approved and confirmed as so amended.  The Lease may be further amended only by a subsequent writing executed by both Lessor and Lessee.
(d)   This lease is terminated at the end of the term of ___ years from date of Lessor?s signature.  Any extensions shall be subject to a new lease agreement at that time.
(e)   The following additional terms are added to the Lease:
2.   Violations, failure to perform This lease shall only apply and be limited to Marcellus Shale operations. (Vertical Pugh)
3.   Water well testing
4.   Environmental requirements. 
5.   Replace repair fences and stone walls 
6.   Separate agreement for ROW 
7.   No gas storage or disposal wells 
8.   Royalty measurement and payment  (no deducts)  arm?s length prices.
9.   All products (par ex. NGL, helium, etc) is subject to royalty 
10.   Royalties to be paid for product used on site, adds that if no local arm?s length sale occurs (par ex. shut in) then royalties are paid on an imputed production and based on the average spot market price for the month.  (reinforces 8, see 22) 
11.   Royality payments due within X days of the end of the sale month. 
12.   Indemnity for injury or damage on property. 
13.   MFN clause
14.   Timber, appraisal 
15.   Use of water extracted on propery forbidden. 
16.   No surface works
17.   Fence the drill pad and well head when completed   
18.   Site resoration
19.   It is understood that Lessor warrants title to said property only in respects that the title is good to the best of Lessor?s knowledge and Lessee agrees that no claims will be made against Lessor pertaining to warranty of title.
20.   Lessee grants lessor access to the books 
21.   Insurance
22.   Imputed production royalties start when the bit hits the dirt
23.   Lands purchased after the lease require separate agreement
24.   Surrender of any part of the land shall include all the leased lands pooled therewith 
25.   Assignment of the lease and notification
26.   Sale of the lease (flipping) and distribution of the sale gains
27.   Imputed gas use by lessor 
28.   Clean and green
29.   No hunting 
30.   Regulation and delay, applicability of FM
31.   Continuous development:  After the first well is spudded in, any other wells required for completion of the unit shall be completed within the initial lease (or extension, if not spudded in the initial period.)
32.   Horizontal Pugh
There are two kinds of ships.  Submarines and targets.
www.survivalmonkey.com

booneslinky

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #8 on: March 13, 2011, 02:12:24 PM »
what does fm mean on number 30 regulation and delay thanks for response have a good day

TERRY

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #9 on: March 13, 2011, 02:51:55 PM »


FM - FORCE MAJURE
Interruptions caused by natural disaster/ acts of God, but also might be stretched to legislation, war, etc.
Reason(s) company cannot comply with contract because it is out of their control.

rfnkmk

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #10 on: March 13, 2011, 04:26:56 PM »
ghrit, what is number 13 MFN clause?

Also, the web link from Thatguy doesn't work anymore. Did anyone get a copy they could share?

virtuallyme

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #11 on: March 13, 2011, 05:26:18 PM »
Most Favored Nation
if a company offers more to someone else it bumps up whatever you agreed to

not an easy clause to get

aubrey

  • Posts: 14209
  • NEWBIE
Re: You want Addendums.....You got em!!!!
« Reply #12 on: March 13, 2011, 05:29:49 PM »
i found an effective strategy for negotiating a mfn clause, at least back when leasing was pretty hot, was to tell the landman that if i couldnt have one, i'd wait for 3 or perhaps 6 months to see if anything better came along.

the clause has a time limit, and the burden of proof is generally on the lessor.

most gained nothing by having them.

wj
CHANGE IT BACK!

willi

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #13 on: March 17, 2011, 04:17:03 PM »
I would also like to read the posting  provided by "Thatguy".  Is there some way that the site can be retrieved and reposted?  I think the information would be very helpful for any of us who are being approached by drilling companies.

Willi

G7

  • Guest
Re: You want Addendums.....You got em!!!!
« Reply #14 on: March 22, 2011, 09:22:24 PM »
Dear thatguy
For some reason, the link you posted at "You want addendums... you got em!" doesn't work (or maybe it just doesn't work with my computer???)  How can I get a copy of what you posted?  Thanks so much!

 


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