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This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting

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This is the Final REAL Lease for the Wyoming Group.

http://www.pagaslease.com/pdf_downloads/wv_lease_09_23_2009.pdf

This is a new link to the modified lease 09/23/2009 to clarify and prevent the possibility of an open ended non payment at the end of the lease.
« Last Edit: September 23, 2009, 10:18:12 PM by admin »
"I gave my kid a new credit card after he maxed out his last one.  He maxed the new one too and it appears that I am dumb enough to give him another one."  Too late now to stop.  The debt is too big.

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JETHRO

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #1 on: September 20, 2009, 12:29:05 AM »
THANKS RON !!

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Berak

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #2 on: September 20, 2009, 01:11:35 AM »
Just glanced through it, this one caught my eye:

23. Future Mortgages. Lessor may at any time mortgage all or any part of the leased premises as Lessor deems
necessary and appropriate, provided that mortgage is subordinated to this Lease.

There is no such addendum in the FG lease, but I'm sure this is a good thing.  This doesn't seem to grant the lessor anything they didn't have (the right to mortgage they land they still own), but does seem to force it to be subordinated.  I don't think some banks will be OK with that.  This is very relevant to me as I want to build on my land someday soon.  I'd appreciate other's thoughts on that and the the difference between the FG and this lease regarding this addendum.

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JETHRO

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #3 on: September 20, 2009, 01:42:35 AM »
YEAH IT CAUGHT MY EYE ALSO ..WHY WOULD IT NEED TO BE IN THERE AS IT IS...COMMON KNOWLEDGE...I GUESS I WANNA SAY?

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JETHRO

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #4 on: September 20, 2009, 01:44:37 AM »
YEAH IT CAUGHT MY EYE ALSO ..WHY WOULD IT NEED TO BE IN THERE AS IT IS...COMMON KNOWLEDGE...I GUESS I WANNA SAY?
I READ UP ON SUBORDINATION ALSO AND I JUST DONT SEE HOW IT APPLYS ...BUT I GUESS THATS WHY I HAVE A LAWYER ;)

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JETHRO

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #5 on: September 20, 2009, 01:48:40 AM »
I LIKE THE WATER PROTECTIONS ... AND THE FENCE BUILDING FOR CATTLE IS A LITTLE TOO UNBELIEVABLE .. AND SOMEONE EXPLAIN TO ME THE THOUSAND AN ACRE UPFRONT..IS THAT AT SIGNING ..AND THEN HOW LONG DO THEY HAVE TO PAY UP? AS YOU CAN TELL IM LAZY ..AND I DONT TRUST MY OWN READING ;D

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Berak

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #6 on: September 20, 2009, 02:09:18 AM »
YEAH IT CAUGHT MY EYE ALSO ..WHY WOULD IT NEED TO BE IN THERE AS IT IS...COMMON KNOWLEDGE...I GUESS I WANNA SAY?
I READ UP ON SUBORDINATION ALSO AND I JUST DONT SEE HOW IT APPLYS ...BUT I GUESS THATS WHY I HAVE A LAWYER ;)

It seems like a way to make sure the mortgage company is forced to be subordinated but the addendum starts by making it look like they are giving you something (which you already have).

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bigbucks

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #7 on: September 20, 2009, 03:57:06 AM »
I LIKE THE WATER PROTECTIONS ... AND THE FENCE BUILDING FOR CATTLE IS A LITTLE TOO UNBELIEVABLE .. AND SOMEONE EXPLAIN TO ME THE THOUSAND AN ACRE UPFRONT..IS THAT AT SIGNING ..AND THEN HOW LONG DO THEY HAVE TO PAY UP? AS YOU CAN TELL IM LAZY ..AND I DONT TRUST MY OWN READING ;D
Jethro, I don't want to agree with you on the lazy part, and I know you really don't want to build that fence for the cattle yourself so you are just hoping that CHK will build the fence for you. However what the passage about the cattle fence means is that CHK will enclose its facilities with fencing to keep cattle out if you should have them or choose to get them. They aren't going to fence in your property for you to have cattle, though. Good try.  Big Bucks Wife

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virtuallyme

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #8 on: September 20, 2009, 03:58:56 AM »
has anybody talked to local lenders about this subordination issue?
(I realize the exact language was just released)
I would defintely do that if I were considering signing.
SB warned us months ago about this, but have folks followed up?

In the event that we want to sell, or eventually our heirs do, the buyer would be subject to this.

So even if we think we never need another mortgage,
never is a long time....

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bigbucks

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #9 on: September 20, 2009, 04:14:58 AM »
I've been up all night doing a paragraph by paragraph comparison between the 12/08 version of the Wyoming County lease and the OFFICIAL Wyoming County lease as co-authored by CHK in association with the current deal. There are many, many changes, some are insignificant (to me and probably to most of you) but there are some troubling ones as well. I am trying to figure out how to best summarize the possible troubling differences. I hope to have something summarized soon, maybe tomorrow. I think the things that have changed provide the most insight into what is important enough to CHK to make them negotiate a lease change from the original version. I would not disregard ANY of their additions or deletions. We are in the Wyoming County Group and have land in Wyoming County that we had intended to sign with them given their original 12/08 lease, but now we will have to reconsider given some of the CHK lease wording changes. The price is good, but our decision is made based on the lease itself. Another fun week ahead!
Big Bucks Wife

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virtuallyme

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #10 on: September 20, 2009, 04:29:08 AM »
This is very relevant to me as I want to build on my land someday soon.

17.  Communications and Access to Information. 
 
  (a) Coordination with Lessor.  Before commencing surface disturbing operations on the Leased
Premsies, Lessee and Lessor shall mutually agree in writing on the location of all wells, roads, pipelines, gates, tank batteries
and other equipment so as to minimize disruption of Lessor's use of the leased premises. Lessor?s consent shall not be
unreasonably withheld. Without a separate written agreement, no, pump stations, compressors, dryers or separators shall be
located on the leased premises unless they are for the sole purpose of treating gas from the leased premises or lands pooled or
unitized therewith, and those shall not be located nearer than, and no well shall be drilled nearer than, five hundred feet (500')
from any house or three hundred feet (300?) from any barn now on the leased premises without Lessor's written consent. 
Lessee shall provide Lessor up to date name, address, and telephone number of the responsible officer or employee who can be
contacted by Lessor at all times for the purpose of reporting any damages or breaches of this agreement. 

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guardian

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #11 on: September 20, 2009, 07:36:21 AM »
I've been up all night doing a paragraph by paragraph comparison between the 12/08 version of the Wyoming County lease and the OFFICIAL Wyoming County lease as co-authored by CHK in association with the current deal. There are many, many changes, some are insignificant (to me and probably to most of you) but there are some troubling ones as well. I am trying to figure out how to best summarize the possible troubling differences. I hope to have something summarized soon, maybe tomorrow. I think the things that have changed provide the most insight into what is important enough to CHK to make them negotiate a lease change from the original version. I would not disregard ANY of their additions or deletions. We are in the Wyoming County Group and have land in Wyoming County that we had intended to sign with them given their original 12/08 lease, but now we will have to reconsider given some of the CHK lease wording changes. The price is good, but our decision is made based on the lease itself. Another fun week ahead!
Big Bucks Wife


Thank you for your intense efforts.  Many of us out here await your work product with a great deal of interest.

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bigbucks

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #12 on: September 20, 2009, 07:38:07 AM »
Shouldn't the word may be changed to shall ? It does change the interpretation tremendously. What do other think?

Shut-In and Minimum Royalties.
(a) If there shall be a well on the leased premises capable of producing gas or gas and condensate in
paying quantities, but from which neither gas nor condensate is sold or used off the leased premises for lack of a satisfactory
market (which well is herein sometimes called a "shut-in" gas well), Lessee may pay or tender to Lessor, as shut-in gas well
royalty, for each shut-in well, a yearly sum equal to twenty and No/100 Dollars ($20.00), indexed to the Consumer Price Index
(CPI) as published for January 01, 2010, and recalculated every five (5) years thereafter, multiplied by the number of acres
subject to this Lease at the time such payment is made. The first such payment of shut-in gas well royalty is to be made on or
before sixty (60) days after the day on which (a) such well was shut in, or (b) this Lease ceases to be in force by any other
provision hereof, whichever is later. Succeeding payments may be made annually thereafter on or before the anniversary of the
due date of such payment; and if such shut-in gas well royalty shall be paid or tendered as above provided, it shall be
considered for purposes of this Lease that such well is producing gas in paying quantities for a period of one (1) year from the
due date of such payment, and for like annual periods thereafter; provided, however, that the payment of shut-in gas well
royalty shall not prevent the termination of this Lease as to portions of acreage covered hereby, in accordance with the
provisions of paragraph 8 hereof. Notwithstanding the making of such shut-in gas well royalty payments, Lessee shall be and
remain under the continuing obligation to (a) use all reasonable efforts to find a market for said gas and to commence or
resume marketing same when a market is available, (b) reasonably develop the lands then subject to this Lease, and (c) drill all
such wells on the lands then subject to this Lease as may be reasonably necessary to protect same from drainage by wells on
adjoining or adjacent lands. All payments or tenders provided for in this paragraph shall be made to Lessor personally or to the
depository bank provided for elsewhere in this Lease.

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guardian

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #13 on: September 20, 2009, 07:49:13 AM »
Shouldn't the word may be changed to shall ? It does change the interpretation tremendously. What do other think?

Shut-In and Minimum Royalties.
(a) If there shall be a well on the leased premises capable of producing gas or gas and condensate in
paying quantities, but from which neither gas nor condensate is sold or used off the leased premises for lack of a satisfactory
market (which well is herein sometimes called a "shut-in" gas well), Lessee may pay or tender to Lessor, as shut-in gas well
royalty, for each shut-in well, a yearly sum equal to twenty and No/100 Dollars ($20.00), indexed to the Consumer Price Index
(CPI) as published for January 01, 2010, and recalculated every five (5) years thereafter, multiplied by the number of acres
subject to this Lease at the time such payment is made. The first such payment of shut-in gas well royalty is to be made on or
before sixty (60) days after the day on which (a) such well was shut in, or (b) this Lease ceases to be in force by any other
provision hereof, whichever is later. Succeeding payments may be made annually thereafter on or before the anniversary of the
due date of such payment; and if such shut-in gas well royalty shall be paid or tendered as above provided, it shall be
considered for purposes of this Lease that such well is producing gas in paying quantities for a period of one (1) year from the
due date of such payment, and for like annual periods thereafter; provided, however, that the payment of shut-in gas well
royalty shall not prevent the termination of this Lease as to portions of acreage covered hereby, in accordance with the
provisions of paragraph 8 hereof. Notwithstanding the making of such shut-in gas well royalty payments, Lessee shall be and
remain under the continuing obligation to (a) use all reasonable efforts to find a market for said gas and to commence or
resume marketing same when a market is available, (b) reasonably develop the lands then subject to this Lease, and (c) drill all
such wells on the lands then subject to this Lease as may be reasonably necessary to protect same from drainage by wells on
adjoining or adjacent lands. All payments or tenders provided for in this paragraph shall be made to Lessor personally or to the
depository bank provided for elsewhere in this Lease.


Perhaps not.

The lessee may or may not make the shut-in payments.  But if the payments are not made, it appears there are consequences to which the lessee will be subjected.

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bigbucks

Re: This Is The Real Wyoming Group Lease - Authorized by C. Lines for posting
« Reply #14 on: September 20, 2009, 08:24:31 AM »
 Thanks guard,

How about this one.

 "The right to use said pipelines terminates when production from the leased premises permanently ceases and all wells associated therewith plugged and abandoned."

Couldn't there be a significant amount of time between "ceases production" and "permanently plugged and abandoned"?

Shouldn't there be a time limit?