Dear Joe,
I can think of quite a few good operational reasons to not change the face of the lease as to royalty, but that is irrelevant. There is not a thing wrong having an addendum to a lease.
Have I changed my mind to prefer filing a Memorandum rather than filing an incomplete document? Nope. I personally like Memorandums of Oil and Gas Lease. I want to keep my business to myself as much as possible.
But then again, if I felt like it, I could do something real simple. I could execute two copies of the lease and addendum. Send one to the oil company and after they record whatever they felt like recording, record the one that I kept -- with the addendum. Checkmate.
Mineral Joe said:
Dear Mr. Cotten,
Thank you. I failed to include a couple of bits of information, the minerals are in Colorado and the lease does include the following phrase:
FOR ADDITIONAL TERMS AND CONDITIONS SEE ADDENDUM ATTACHED HERETO AND MADE A PART HEREOF.
Like I stated though, they say they will not be filing the addendum, would you still want a Memorandum? I don't know if they'll go along with the memorandum. I don't know what their reluctance is to change the lease as to the royalty offered before they print it out from their Word doc as they are only matching another lease offer, unless it is to try and keep offers from getting competitively higher.
I'd like to send you the name of the company as it might help in understanding the issue by knowing as they may have a name for themselves but I don't need any repercussions if it gets back to them by having their name thrown out in an open forum.
I did agree to pay post production cost (not all though) as in the lease it speaks of products sold at the well in what looks like an attempt to leave open where and how royalty comes in play probably for those who want a no cost clause written in.