Lease ratification

We have a small interest in 22 5n 7W. Lease signed in 1998 by mother in law who passed away shortly thereafter. Property has had several operators and has been in wife’s name since the estate was settled. Signed a division order many years ago and have been receiving royalty. Now Baytide wants a Ratification of the Lease. Claim they are trying to get their title work updated. This makes no sense to me. Anyone have any similar experiences or thoughts? I see no reason to sign but maybe I am missing something

I would talk to a Landman (cheaper) or an Attorney. As long as there is production from the minerals, the lease from 1998 should hold the minerals under lease by virtue of ongoing production insofar as there has not been a shut-in that violated the terms of the lease and all such requirements of any shut-in were met by Leasee. However, since Lease was originally signed by Mother-in-Law, they may be wanting your wife's signature to endeose and accept the terms asnd conditions of the lease. Oil and Gas attorneys like to cover all their bases even if they make you send the money to do it. Perhaps you can start by talking with them.

Make sure the leases are identical and you are not ratifying a change against your best interest.


Trust your instincts. A lease is a lease is a lease until it is not a lease. Then they demand a ratification of a lease in order to breath life back into a dead or dying lease. Ask Bayside if they would like a new lease then listen, then find out what your options are.


I would not sign a ratification without consulting an attorney. Was your mother-in-law a life tenant, or have a life estate? Was your wife a remainderman? I've seen this before where a company will try and get a lease ratified because they forgot to get a remainderman to ratify the original lease. If they leased a life tenant who then passes away, they no longer have a good lease.

I think Gary is correct. I would try and renegotiate the lease as if it were a new lease, and even then, I would only sign a ratification as to the producing formations, be careful not to sign away any formations that are not currently producing. I would try to get an increase in royalty, go for a 1/4, and get a bonus. I think an attorney would be best if the acreage is large enough.

Thanks for the input. I appreciate it.