What happens if one of the Heirs were excluded from a lease

Oil and Gas Leasing Help
1

My Mother's family entered into a lease for 168 Acres in the Bakken field in North Dakota. I am just now getting up to speed on everything that took place and it appears they signed a lease that they shouldn’t have. 8 out the 9 Heirs were paid $50 for this lease and it is set up for 1/6 royalty. The 9th person was not contacted and was not a part of this lease agreement.

Due to the exclusion of the 9th person, can we get out of this lease and re-negotiate a new one?

The Broker that submitted the lease has sold it to an oil company so it appears like this is a viable plot of land.

2

Kevin:

If this acreage is an "undivided interest", each party would be independent in that they could lease to whom they want. I would say that since a lease was entered into by these 8 heirs, the terms of the lease would be binding and no new lease could be entered into based on the exclusion of one heir.

3

Should the left out person contact the Landman to get there name added?

4

Kevin, in my opinion, by no means should the ninth person have their name added to that lease, as it sounds pretty poor. The ninth person should "market" their minerals, getting offers from as many sources as they can. Some study of this site and forum will help them make an informed decision. Kevin, you didn't mention the term,I hope it was short, as I think the best thing might be that it expire with no drilling. You make your own luck in this business by being informed. I hope the unleased person will join this forum, there are many people here who will help. I wish you the best of luck in the future.

5

The 9th Party, if they do have a legal title to their stakein the properties, would likely be able to negotiate their own lease at perhaps better terms than the deal cut by the other 8 relatives.



charles s mallory said:

Kevin:

If this acreage is an "undivided interest", each party would be independent in that they could lease to whom they want. I would say that since a lease was entered into by these 8 heirs, the terms of the lease would be binding and no new lease could be entered into based on the exclusion of one heir.

6

Kevin:

The posts given by RW and DJG were correct in that this 9th individual should be able to get a better deal and should not even think about leasing per the terms of the original lease.