Only if you, the landowner, think you have negotiated a ratification on the basis of market conditions and with sufficient knowledge of your lease should you accept a ratification. When in doubt, of course, hire a lawyer. Third, new leases often include favourable terms for landowners. They often contain clauses aimed at increasing domestic use, limiting land use, limiting the placement of pipelines, etc. Can you negotiate these terms for “ratification”? The real question is: why? Why does the compatriot come to see you now? If you already have an existing lease, why would the tenant want you to sign something new? The quintessence is that the lessee needs you to “reiterate” the original lease (maybe change a few conditions here and there) so that the lessee can sell these gas rights to one of the dozens of shale developers. Think before you sign. The answer is probably not. Do you know what it means to “ratify” the lease? Do you know why the current tenant would want you to sign a “ratification”? Do you know what the market would pay in bonuses and royalties for your country if you didn`t already have a lease? Do you know what other landowner protections will be included in new leases? Don`t sign anything until you know the answers to these questions. The contract contains information on both the initial agreement on test drilling and the long-term production activities that may follow. For example, when a landowner shares and sells mineral production land, the new owners of each parcel are asked to ratify the lease, usually on the original terms. The tenant reduces the paperwork and beinkram required to continue producing from these wells under new supervision.
Once ratified, all provisions of the rental agreement will remain in force, unless the owner (landowner) objects and requests changes to the existing contractual language. Consulting with an oil and gas lawyer could help you get better terms or better understand the mineral leasing process. For the oil and gas industry, lease ratification is the designation to request acceptance of an existing lease, with or without modification by landowners who have purchased parcels to which the original tenant has given permission to drill and produce. The ratification clause of an assignment of a leasing stipulates that all parties ratify the lease to be transferred. You are a landowner with a current oil and gaspé contract for your property, and the current tenant sends a compatriot who asks you to “ratify” your existing lease. Should you do it? First there is a review of oil and gas leases, and then we will look at the basics of ratifying oil and gas leases: why it is necessary, how to implement it and what the precautions are. We also have a bit about non-executive owners who need to be particularly attentive to the conditions. In all likelihood, the lessee (usually the current producer) thinks you have legitimate reasons to break the existing lease. A common reason is that there has been little or no production of your property.
Their existing lease may not contain unification or pooling language, and the lessee would now like to add it as part of the “ratification”. (This is not a reason to cancel the lease, however). The current lease may contain conditions with respect to shallow and deep rights that make the property non-marketable for “deep” producers.. . . .