How do I rescind a disclaimer of a oil and gas lease?

Full question:

My husband recently passed away. Every thing we owned was jointly with the exception of an oil & gas lease held in my husbands name only. This was our second marriage & my husband had children from his last marriage. I felt big hearted & signed a disclaimer to the oil & gas lease. Days later I knew I had made a hugh error. I went to the attorney & she wrote to the children that I had recinded the disclaimer & to return the oil lease. She said it would be o.k. since the orignal disclaimer is in my file, & the one's mailed were only copies. My question, is this going to be O.K. & legal?? THANK YOU

• Category: Oil Gas and Minerals
• Date: 04/07/2025
• State: Arizona

Answer:

Generally speaking, rescission is generally the act of making void or canceling. Typically, the term is used in connection with the right of rescission that is a borrower's statutory right under the Truth-in-Lending law to allow borrowers who pledge their homes as collateral on a loan to rescind or cancel the loan within a three business day “cooling-off period” after closing. The right of rescission rules are part of Regulation Z, found at 12 CFR 226.23. All persons must receive a copy of the material disclosures as well as 2 copies of the Notice of Right to Rescind. The right of rescission applies to any person who has an ownership interest in the principal dwelling being pledged, whether or not that person is a named borrower, or a party to the transaction.

With regard to an oil and gas lease, a contract between mineral owner, otherwise known as the lessor and a company or working interest owner, otherwise known as the lessee in which the lessor grants the lessee the right to explore, drill and produce oil, gas and other minerals for a specified primary term and as long thereafter as oil, gas or other minerals are being produced in paying quantities. This lease gives the lessee a working interest. The oil and gas lease is granted in exchange for royalty payments to the lessor.

The Federal court for the Tenth Circuit has stated: "A party entitled to avoid a transaction does so by giving notice to the other party of his decision to do so. By this notice the contract is abrogated .... Naturally the consent of the other party, and his return of the consideration, has never been deemed a prerequisite to the effectiveness of the annulment." Shamas v. Koch Industries Inc., 759 F2d 796.