Michigan Amendment to Oil and Gas Lease to Amend Land Description to include Additional Lands

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Multi-State
Control #:
US-OG-081
Format:
Word; 
Rich Text
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Description

A lessor and lessee may desire to amend an existing lease to include additional lands. This form addresses that situation.
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FAQ

A Lease Amendment is used to modify an existing Lease Agreement between a tenant and landlord by adding or removing clauses or changing existing clauses. An amendment allows the parties to change the terms without signing a new Lease Agreement.

Hear this out loud PauseAny partial assignment of any lease shall segregate the assigned and retained portions thereof, and as above provided, release and discharge the assignor from all obligations thereafter accruing with respect to the assigned lands; and such segregated leases shall continue in full force and effect for the primary term ...

Hear this out loud PauseThe lessee of an oil or gas lease can assign the entire lease or part of it. In other words, the lessee can sell or transfer part of the estate or the entire estate to which they have the working rights. The assignee is assigned the working interest and lease obligations, including override royalty.

Hear this out loud PauseWhat is assignment of a lease? The process of assignment of a lease is essentially selling the lease to a third party (the ?assignee?). If you are a commercial property tenant, your contract likely contains a clause that allows you to assign your lease to a new tenant.

The definition of assignment in real estate is the sale, transfer, or conveyance of a whole property ownership/rights or part of it to another party. The term in the oil and gas industry is used for sale, transfer, or conveyance of working interest, lease, royalty, overriding royalty interest, or net profit interest.

Hear this out loud Pause'Assigning' a lease simply means transferring your lease to another person so that they become the new tenant. Once the assignment has taken place the lease continues to exist and the new tenant becomes liable for all of the tenant's obligations in the lease.

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Michigan Amendment to Oil and Gas Lease to Amend Land Description to include Additional Lands