4.013 Protective Lease on Possible Open Interest
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Protective Lease on Possibly Open Interest
Protective Lease on Possibly Open Interest: Guadalupe Production, Inc., acquired and oil, gas, and mineral lease covering Tract 1 from William Marshall, which is dated September 14, 2008, and recorded in Real Property Book 2008, page 151. As discussed in Requirement 4, above, the claim William Marshall to ownership of Tract 1 is subject to a substantial risk of title failure and William J. Lightfoot may have the superior title to Tract 1. Consequently, the validity of the Guadalupe Production, Inc., oil, gas, and mineral lease from William Marshall is questionable. If his title failed, Tract 1 would be open and not subject to any oil, gas, and mineral lease. For your protection, we recommend that you obtain a protective oil, gas, and mineral lease from William J. Lightfoot covering Tract 1.
Requirement: Obtain a protective oil, gas, and mineral lease from William J. Lightfoot covering Tract 1. Alternatively: (i) accept the risk of failure of your lease from William Marshall, and (ii) qualify your affidavit of ownership and control on Form OGB-2 that you submit to the Alabama Oil and Gas Board pursuant to Rule 400-1-2-.01(2)(c) as part of your application for a drilling permit to show the potential open interest of William J. Lightfoot.
Copyright 2011 by Edward G, Hawkins. All rights reserved.