27-561. Assignment of lease; recording

244 words·~1 min read·/az/title-27/27-561

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. In event of the assignment of a lease as to a segregated portion of the land covered thereby, the rentals payable thereunder shall be apportionable between the several leasehold owners ratably according to the surface area of each. Default in rental payment by one shall not affect the rights of other leasehold owners under the lease. If the lease is assigned in whole or in part, liability for the breach of any obligation under the lease shall rest exclusively upon the owner of the lease or the portion thereof who commits the breach.

B. All leases issued under the provisions of this article shall be assignable in whole or in part, but any assignment of a part of a lease shall cover not less than a quarter of a quarter section or the approximate equivalent thereof.

C. All assignments shall be on forms prescribed by the department and shall be filed with the department within ninety days from the date when made by depositing a duplicate executed original or a copy thereof certified by a notary public. The department shall retain in its files executed duplicate originals of all issued leases and of all assignments deposited with it. All leases and assignments shall be recorded, as other leases are recorded, in tract books kept for that purpose by the department.

D. All leases on file and all assignments filed with the department shall be constructive notice to all persons of the contents thereof.