I recently signed a top lease on some minerals in Colorado. The Land Company now refuses to pay the up front bonus money. Do I have any recourse if they have not filed the lease?
Jim:
I would contact an oil and gas attorney immediately, one in the area where the minerals are located. If the lease has not been recorded, perhaps a termination of the lease could easily be made but if it has been recorded, things could get complicated in a hurry. By all means, don't waste time and act promptly to get this terminated.
I think it would be wise to record a statement that the bonus has not benn paid ( if indeed the lease has not been recorded) and that you consider it null and void due to lack of consideration, copy to your potential lessee. I also suggest that you not let leases out of your hands without cash payment, possibly escrow with a bank. By all means, contact an attorney that you trust. Good luck!
Jim,
Do you mind telling who the "Land Company" is? It might help protect someone else from getting ripped off. Thanks.
Clint Liles
Jim, as Clint posted, naming the company would be useful information to many who view this site. I've recently been approached by two companies for CO minerals. I'd like to know if one of them is the one who stiffed you.
Jim:
Both Mr. Liles and Eastern MT have excellent suggestions in that you should always specify leasing company's who practice this type of wrongful activity.. This holds true for all mineral owners who experience this same scenerio as the information you provide, may alert many mineral owners about "who not" to deal with in lease negotiations. Luckily, these instances are not widespread but they are definately out there. If we all work together in regards to sharing information, we will all benefit in the long run.
Charles,
"If we all work together in regards to sharing information, we will all benefit in the long run." I like the wording of that statement. Thanks, Charles.
Clint Liles