In 2007, the Easthams entered into a lease with a lessee who later assigned the lease to Chesapeake. The lease term was five years. Paragraph 19 of the lease stated,
“In consideration of the acceptance of this lease by the Lessee, the Lessor agrees for himself and his heirs, successors and assigns, that no other lease for the minerals covered by this lease shall be granted by the Lessor during the term of this lease or any extension or renewal thereof granted to the Lessee here in. Upon the expiration of this lease and within sixty (60) days thereafter, Lessor grants to Lessee an option to extend or renew under similar terms a like lease.”

Deed Reformed to Retain Oil & Gas Rights

If you are selling a property, the worst way to find out that there are possible environmental, health or safety issues is from a Purchaser who is doing its due diligence, especially when it is under a signed purchase contract. Now you know about it so that even if the deal doesn’t close, you will have to tell subsequent prospective purchasers and lenders. Not to do so is fraud. At best, Purchaser will beat you down on the purchase price, retain some of the purchase price in escrow until the problem is solved “to its sole satisfaction,” or a combination of the two. Better to do your own due diligence prior to listing or refinancing as if you were purchasing and to solve the problem your own way.

Death and taxes – you know the saying. But have you planned for them? As certain as they are is your need to have a plan. Your plan may not need to be complex, but, again, you need to have a plan.
The plan can be a simple as reviewing the beneficiaries of your life insurance policy and retirement account. You should review how your home, bank accounts, vehicles, etc., are titled. Will you need to probate your estate?

Do you own them?
Conceptually, when one owns a piece of land entirely, i.e., in “fee simple,” he owns everything from the center of the earth below the parcel to the heavens above it. That includes ownership of oil, gas and other minerals unless some past owner of the parcel conveyed away such ownership. The only way to determine if that has happened (typically, in NW Ohio, during the oil boom days) is to do a “title search” for the parcel at the county recorder.

I grew up in Shelby, Richland County, Ohio. I graduated from the U.S. Naval Academy, — five years of sea duty as a Surface Warfare Officer, 19 years in the Navy Reserves, retiring as a Captain. I also graduated from The Ohio State University College of Law. I was an attorney at Marathon Oil Company in Robinson, Illinois and Findlay, Ohio. I was at the large Toledo law firm, Shumaker, Loop & Kendrick, LLP, for twenty years, in the Real Estate Department and the Environmental Practice Group.