Q: When does the right to request a re-assignment terminate if the provision allows for them to exercise in perpetuity?
We have assignments of working interest that all include a re-assignment provision allowing the assignor, upon request, to be re-assigned his/her interest in all depths below 100’ below the deepest producing well. As of now, it looks like the deepest well is 10,571’. Our client wants to drill deeper than that but is afraid the successors of the parties who reserved the right to request a re-assignment might exercise that right.
A: It sounds like you have a valid concern here. However, in situations like this, the devil is in the details. In other words, an experienced oil and gas attorney would have to review those assignments and discuss the facts with you to be able to advise you appropriately. There may be common-law doctrines, such as estoppel, that would operate to prevent them from exercising the re-assignment.
A: It sounds like you may have a valid concern here. However, in situations like this, the devil is in the details. In other words, an experienced oil and gas attorney would have to review those assignments and discuss the facts with you to be able to advise you appropriately. There may be common-law doctrines, such as estoppel, that would operate to prevent them from exercising the re-assignment.
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