Let me preface this by advising my wife inherited mineral rights but we are new to this whole thing.
In 2017 an oil & Gas lease was executed with a company. We just received a “Release of Oil and Gas Leases” letter from the company, stating they release all right, title, and interest. The cover letter states that this was the company’s “notice to surrender said Top Lease. Lessor is entitled to keep 10% deposit paid previously…and you are encouraged to file in (said) county to clear title.”
Being new to this, what just happened? And can someone explain about the Lessor keeping 10% deposit paid? In 2017 we received a check for an “Execution Fee” and another for “Lease Bonus”, but nothing else. Do we have to pay back 10% of one of those?
Thank you.
It seems that you had an earlier lease in effect, whether in the primary term or held by production. The new company took a “top lease” and paid you 10% of the agreed bonus, with the remaining 90% due upon termination of the old lease and the new lease becoming effective. The new company decided not to proceed with the new lease and pay you the remaining 90%. You do not owe any refund to the company. The release should cite the recording information for the top lease. You should file the release to clear your title and be open to any new leasing. Unfortunately, you will have to pay the recording fees. You did not say what state your minerals are located in and so this advice is general.
Sorry I’m so late in responding, but I found the email from Mineral Rights Forum went to my Junk folder (and I finally went through it). I want to thank you for taking the time to respond and I really appreciate the information.
Ron