South Dakota Ratification of Oil and Gas Lease by Party Claiming An Outstanding or Adverse Interest
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FAQ
An assignment of oil and gas lease is a contractual agreement between a landowner and an oil or gas company in which the company gains the right to explore for, develop, and produce oil and gas from the property.
The primary remedy for breach of a restrictive covenant is a permanent injunction to restrain the breach. However, the courts have jurisdiction to award damages instead of an injunction.
What is a breach of covenant? Essentially, a breach of covenant means that one or more parties have not acted in ance with the covenant that is currently in place. This could be in relation to any number of things, such as access rights, building rights or even preventing a business being run from the property.
Common remedies available are: actions for damages, injunction, cancellation of a document, quieting title, ejectment, specific performance, accounting, or. declaratory judgment.
The label "implied covenant law" is used to describe the body of case law where courts have found an implied obligation that necessarily compliments, and supplements, the express terms of an oil and gas lease.
To ?ratify? a lease means that the landowner and oil & gas producer, as current lessor and lessee of the land, agree (or re-agree) to the terms of the existing lease.
23. In general terms, the Pugh Clause provides that production from a unitized or pooled area located on or including a portion of the leased lands will not be sufficient to extend the primary term for the entire leasehold.
What is the granting clause? The granting clause is the clause under which the owner of the oil and gas rights leases the oil and gas rights to the oil and gas company along with the right to develop the oil and gas on a specifically described piece of real estate.
