Full question:
A 1 year oil and gas lease with Mission River Systems terminates on July 27, 2004. Mission Rivers assigns the lease to Dewbre Petroleum and was executed on November 16, 2004, 'however effective as of August 1, 2004'. Is this legal to backdate ? An over-riding Royalty was given on August 1, 2003, which was 4 days after the lease was signed on July 27, 2003 and said lease expired on July 27,2004..Does this over-riding interest expire with the termination of lease on July 27, 2004?Oil production did not start until October, 2004 and we received our first royalty check on Dec. 5, 2004. Can this 2.25% over-riding be taken away because it expired with the termination of the lease?
- Category: Oil Gas and Minerals
- Date:
- State: Texas
Answer:
Backdating the lease assignment may not be outright illegal, but it raises concerns about accurately representing the ownership timeline between Mission River and Dewbre. A party cannot simply backdate to avoid financial obligations.
Whether the overriding interest expires with the lease on July 27, 2004, depends on the specific contract terms. If you received payments, they likely cannot take that away without proving a mistake in court. They would need substantial evidence to support their claim.
Given the complexity of your situation, including the passage of time since these events, it’s crucial to consult a local oil and gas attorney. Statutes of limitations may affect your ability to take legal action on these matters.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.