Public Lands: Indian Oil and Gas Leases; Assignment

摘要

Seller and buyer enter into a purchase and sale agreement (Agreement) for the sale to buyer of seller's interests in oil and gas leases located on Indian tribal land. At die closing in February 1998, seller executes an assignment that is recorded in the San Juan County, New Mexico records and Bureau of Indian Affairs (BIA) assignment of mining lease forms. Buyer takes possession of the property, plugs and abandons several wells and operates the remaining wells. Hie Agreement requires buyer to post and maintain a $15,000 certificate of deposit, which is pledged to seller until release of seller's bonds; under this pledge seller can exercise its rights if seller's bonds are foreclosed upon or if buyer has not replaced seller's bonds by June 30,1999.