4.009 Lease Extension
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Extension of Lease 1: By typed addition to the printed form of Lease 1, the parties to that lease provided that the lessee could extend the primary term of the lease for an additional five years by paying the lessors $68.00 per acre covered by the lease or by depositing that amount to the credit of the lessors in the depository bank on or before the expiration of the primary term as originally set out in the lease. Although the abstract indicates that Guadalupe Production, Inc., exercised its option to extend the primary term of Lease 1, the abstract does not contain copies of cancelled checks or receipts that absolutely confirm that Guadalupe Production exercised its option.
Requirement: Furnish proof that Guadalupe Production, Inc., exercised its option to extend the primary term of Lease 1, or accept the risk of title failure to Lease 1.
Copyright 2011 by Edward G, Hawkins. All rights reserved.