Leasing Issues

New!

Disclosure of Mineral Lease in Real Estate Transactions  real estate disclosure form 2016

Terminating a Lease

  • Letter to gas companies claiming Force Majeure as a reason to arbitraily extend gas leases.  Word doc. Why Force Majeure claims are invalid  Word doc

  • 2012 Letters from Chesapeake claiming Force Majeure

    • Some people with Chesapeake leases have received a letter from Chesapeake dated after November 15, 2012 that claims the lease is extended until December 31, 2013 by force majeure based on the NYS DEC on-going environmental review.  The November 15, 2012 court decision threw out such force majeure claims. The claim of extension until December 31, 2013 is based on an erroneous interpretation of the agreement between the NYS Attorney General and Chesapeake.  According to the AG’s office, the agreement “only addresses the fact that they [Chesapeake] will not use the environmental review as a basis to extend any leases past the end of” 2013.  It does not extend leases until that date.
    • We need to know if you got such a letter from Chesapeake so we can pursue appropriate action.  Please send an email to fleasedny@gmail.com, and cc Renostry1@gmail.com if you have received a force majeure letter after November 15, 2012. 

    •  Thanks,Ren Ostry, Project Assistant; Renostry1@gmail.com973-986-5259  PS – Fleased is now on Facebook!

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  • Coming Soon! What to do if your lease or a fraction of your lease has been sold to another company

  • Q&A on the Termination Process
    • Q.   What if the Company does not reply to your request?
    • A.   My advice is to wait 30 days after the expiration and then send them a demand letter and Notice, under 15-304 (2) (a).   they can then file an affidavit claiming the lease is still valid (2) (c), but if they do nothing in 30 more days, the land owner files the Notice and Affidavit of Service with the county clerk and under (2)d):  ‘BY SUCH FILING THE LEASE SHALL BE CANCELLED AND OF NO FURTHER EFFECT.”
      I have these forms drafted, along with instructions, but need to finalize them on Saturday. joe

    Q. Do I have this correct – all this talk about terminating a lease depends on doing these steps AFTER the lease expires?

  • A. That is correct, as I think doing anything before the expiration is kicking a sleeping dog and should be avoided.   The first section f 15-304 mandates that they file a send a recordable release document in 30 days of the lease termination.   I have yet to see one of those, but I think it safest to wait this 30 day period out and then send the demand letter with Notice.  joe

    • b) what if the orig lease is not on file (doesn’t have to be; can be just a NOI or could be nothing: per my lease lawyer consultant)?

News Coverage:

 Compulsory Integration

Leasing Public Land

Split Estate  (Separation of Surface and Mineral Rights)

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