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Hello, I would be happy to assist you, but I do need some clarification first.
Are you a partial owner? What power of attorney did you revoke -- one that appointed someone to act for you, or do you mean that you resigned as agent for someone else under their power of attorney?
Please explain your reasoning for "revok[ing] [your] POA"?
The 13 appointed Jim as executive with POA's. I rescinded his authority to act on my behalf.
I only had two semester of business law, a long time ago, but many ambiguities, omissions, and just plain bad give aways while we kept all the liabilities.
Actually a bad contract is construed against the party that drafted it (in the event there is an argument concerning meaning of terms, which arises by ambiguities in drafting).
What you have done, however, is prevent him from making you a part of an agreement you may not desire to be a part of. If you don't become a part of the lease, then your interest in the minerals may later be force pooled. That means they'll get to mine the minerals regardless of your consent; they'll just have to pay you a royalty (which is usually less than if you had signed a lease with them).
If you lease your minerals and don't retain a working interest, then all liability is on the operator of the well that is drilled, if any.
The way the lease reads, they can assign any and all rights without our approval and have no liability for anything the sub does. In fact we agree to approve anything they broker. I know about the forced pooling, but what I am worried about is ownership liabilities for what they leave, like the produced water they get to use and leave.
I don't know what else to tell you other than to ask them for revisions or make concessions. Getting an attorney involved may make a difference.
I will opt out to see if another expert can further assist you. Please don't worry about rating my answer. Please do not respond to this message.
Thanks for your patience.
I'm okay waiting. I'm not sure whether we even own the ground water with the split estate and Colo water laws.
Gosh! It seems like such a simple question:
If my share of the oil is force pooled, who gets the future liabilities? Does my duty not to pollute end when the oil company takes the oil?
Hi - my name is XXXXX XXXXX I'm a Business litigation attorney.
You are not liable for the actions of another - - even if it occurs on your property.
Therefore, if your interest is force pooled with the others and mineral, oil, gas, etc. excavation occurs on your property, then the company performing the work is liable to you (as a landowner) and the public in general to perform the operations safely.
If the excavation company is negligent or otherwise causes damage or harm to the property (i.e. - - pollutes the water), then it is the company's fault. In fact, you and the public would have claims against the company for their actions and damage to your property.
The contract SHOULD contain some type of indemnity provision or agreement that says the excavation company will take full responsibility for its activities and will hold you and the other owners harmless and defend you against any claims that stem from activities that they perform.
If there is no such provision in the agreement, you should push for one. Even if there isn't such a provision, you should be able to get protection legally, but it would take filing a lawsuit to obtain the protection. Thus, a simple indemnity provision in a contract is easier and much cheaper.
Thanks, XXXXX XXXXX those are the reasons I don't want to sign the lease - poor indemnification for the lessor.
This is a split estate, so I'm not worried about the immediate land, just the minerals, and what liability might come up in the future.
If my portion is force pooled, they send me discounted royalty which sounds like I keep my ownership, including all the duties that involves. True or false?
Please let me know if you have any additional questions. Also, please take time to positively rate our conversation so I may receive credit for my time. Thanks.
I feel that perhaps you don't have experience with the Colorado laws regarding mineral extraction and the separate but connected water issues which are the basis of my conundrum. They are different from the rest of the business world.
May I go back to the moderators and be more specific in requesting those qualifications?
I agree, there are laws and regs covering what happens during active production. My concern is with what they can legally leave behind, for instance produced water, the ownership of which I am not sure.
It's my 13 years working in EPA that raised my apprehensions! I was in the Superfund Enforcement section when we went after waste owners as far back as we could find them. Even you, in throwing out some household chemical, can technically be held liable if the landfill leaks. Of course there are de minimus exemptions, but prosecution is pretty much up to the Agency.
It's the states who have the authority over the basic ownership rules, and they are not uniform.
Do you have the background to speak with any certainty on these issues?
But, I'm not the one doing the dumping, and I'm not sure yet whether or not I will actually OWN the produced water containing the pollutants. The lease I refuse to sign specifically allows the landmen to USE or even assign it any way they want, but makes no provision for what happens to it when they're done with it.
Do you practice in Colorado?
It's okay to admit it when you don't know an answer.
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