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Oil/Gas - oil/gas lease
Expert: Alan H. Coogan - 10/28/2009
Question
Hi Alan and thanks for your time. A friend of mine signed an oil/gas lease in 2008 and did not get paid for his entire acreage. Lease says 200 ac plus or minus, but deed plots out to 213. Also, in the lease his name is misspelled, "Shaffer" instead of "Shaefer". And there is a storage clause. Can he get out of the storage clause because of the mistakes? He'd like to sell his rights but he doesn't think anyone will touch them with the "...in connection with the foregoing and in connection with treating, storing, caring for..." item in the lease.
Again, thanks for your advise.
Cole Wilson
Answer
Dear Cole
The lease is a contract. Typos are typically correctable. Also look for a correction clause, notice clause and arbitration clause in the lease for remedies.
Did your friend ask for payment on the 13 acre?
I don't know your state or its laws, but it sounds like your friend took the benefit of the contract [less 6%]and now wants to get out of it.
I don't think this is going to work if the lease is of drillable value.
As to storage--the same applies,
Sorry
AHC
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