The landowners (the defendants) attempted to exercise a clause in their lease - originally signed with Anschutz Exploration - which allows them to obtain a bone fide, third-party offer for a new lease during the primary term of their lease with Chesapeake (the plaintiffs). Upon receiving a third-party offer the lessors (landowners) are required to notify the lessee (Chesapeake) in writing within 30 days and provide the opportunity for them to match the new offer. All of this took place when Torchlight Energy, Inc. approached the lessors and offered them a better value for their land. The offer was forwarded to Chesapeake in writing, and they chose not to match the offer. The landowners thus were seeking to sign the new leases with Torchlight. Read our previous report on this lawsuit here.
From Farm and Dairy:
Read the rest of the article here.
It certainly seemed like the landowners had a good case based on the language in the lease. It would be interesting to read more explanation of the judge's decision. In a situation where it seemed that a judge would have to tell one side they were right and tell the other side they were wrong, it would appear that he just chose to tell both sides they were wrong and not really make a decision on the language of the lease.
Connect with us on Facebook and Twitter!