For the over the last 30 days were have been under a legally binding letter of intent to lease minerals in northern Blaine County, 4-18N-12W, to WSB Energy, LLC. The lease was for three years and payment was to be made by direct deposit NLT than Oct. 27. No money was received!
Today our point of contact, Devon James, sent an email saying his company's management no longer wished to lease minerals in northern Blaine County.
We turned down other offers because of the letter of intent. It appears we'll now be force pooled by the Oklahoma Corporation Commission on Nov. 6. Is there any recourse we can take against WSB Energy, LLC?
What company is force pooling you ?
89er Energy, we have protested with the Corporation Commission.
We hold minerals straight West of you a bit over 4 miles. We have been leased for 2 1/2 years to Newfield. I see that Newfield holds a lot of leases in our area. Good luck !
Welcome to the oil business! I had a similar experience earlier this year. Had a notarized PSA to sell, buyer sat on it for more than a month & kept putting me off about payment, then made an excuse that production wasn’t what he expected and backed out of the deal. You should probably talk to a lawyer with mineral rights experience. I think these guys know that the only recourse is to sue them and that is usually not worth the cost. I’ve been told this is fairly common. Good luck.
Probably best to exchange the lease for a check. At a minimum have clauses that protect you if the bonus is unpaid or lease unfiled. The lease is a legal document, the “standard” lease does not have a bonus clause at all. A company could sit on your lease without filing or paying, if another offer comes along you would likely be advised that you cannot enter into a new lease while your current one is outstanding.