Force Majeure

The information contained herein is provided “as is,” is for educational
and information purposes only, and does not provide legal advice on
any specific legal matter or factual situation. Legal advice is dependent
on the specific circumstances of each situation, so some information
may not be correct for your situation. This information is not intended
to create or provide a lawyer-client relationship. No one should act on
this advice without seeking professional counsel. This information is
not soliciting clients for legal work. This information is provided at
your sole risk. There is no warranty of any kind, express or implied.

Therefore, this information is not a substitute for and cannot replace
the advice of your own legal counsel.

Many lessors (people who’s land is leased) in New York State have received letters from the gas company leasing their land that claim that the lease will be extended through a clause known as “force majeure.”  The claim is based on the Executive Order issued by the Governor (EO 41) that addresses the issuance of permits for horizontal drilling combined with high-volume hydraulic fracturing.

There are reasons that the assertion of lease extension can be challenged.  The primary reason is that gas companies are not precluded from developing mineral resources using other technologies.  A lengthy letter that explains the arguments against the force majeure claim is available on the “Resources” page of this site.

Lessors wishing to challenge the force majeure claim should notify the gas company (see “Resources” page) by certified mail with a return receipt to prove the company received the letter.  This is important since the legal system will assume that you agree unless you register your objection.  Letting the NYS Attorney General Schneiderman know about what is going on by copying him on such a letter could help raise his awareness and his office might take some action.  His address is shown on the template letter.

Do not cash any checks that the company sends to you. That would indicate your agreement.

 

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