Hi I am new to the forum and have been following all of your comments I leased my land to Campbell Development and have been paid I was wondering about the letter Bonnie got from Dale Land & Minerals, I also received a letter and called them they offered me 600. an acre for all or part of my land my land is in the Whitetail area and I was wondering if Bonnie got that offer with or without saying where your acreage is I also have 1/6 royalties on a five year lease, they sd I could see all or part of my land, any info on this would be appreciated.
Exciting times. We just signed with shale. Hopefully the hit gushers with these first two wells.
Patti Leitner–Just to let you know my father Edwin Potter homesteaded that land in 1918, you are probably more familier with the Marriage family Dorothy is my sister Rick is my nephew, I used to go their every summer until the late 1950’s Edwin moved to Arizona in 1945 so I spent my winters here and summers in Whitetail
To Ed Potter…Dale offered me $750 an acre for the lease with the 1/6th royalty…$500 an acre for the lease with 1/8th royalty. We (the other inheritors and I) decided it would be very shortsighted to “sell” our royalties now after waiting this long for movement. Seems we should be able to tough it out a while longer. Just our position and certainly not suggesting you should do the same.
To Bonnie Young… Thank you for the information I was just curious as to the difference as we also have 1/6 royalty he also said we could sell part of our minerals and keep the rest, I will be talking with him further and see what he has to say. Once again thank you for the information.
Ed Potter–Wanted to say Hi --My brother Clyde lives in Whitetail and I am trying to place you. Never heard of the Campbell Development . Hope everything turns well for you
Did anyone go to the meeting that Shale and Apache were to have in Scobey this weekend? It would be nice if someone could give us an update.
Thanks
Apache is having a townhall in August. It was posted in the leader.
What are the per acre lease prices and royalties that others are being offered? I’m trying to figure out what the going rates are now?
Alan Ostby
Does anybody know the law in Montana regarding majority versus minority mineral rights ownership?
Alan not exactly sure what you’re asking. Though for broader exposure you might post your question to the front page of this website.
Mineral rights are real property. Perhaps this will answer your question. Under a 320, if I own 200 net and you own 120, I can not dictate if you lease, or to whom you may lease, or what terms you must accept. Your “minority” rights are free and clear of me or my “majority” interest. Though if we lease to separate companies, with my majority (200) interest my Lessee has the right to be operator of any drilling rather than your Lessee with their minority (120) interest.
Is it common to receive a lease to sign and notarize but on the lease there is no mention of price per acre. Just seems strange. I do not want to sign until I know.
They do that because they want to keep confidential what they paid you
Christina explained the confidentiality premise to me and she said they will either email or fax you a cover letter with the terms if you want. I did want and she did fax it to me. In earlier leases they sent cover letters with that information as a matter of course…guess they don’t now.
By the way…Christina is in the Shale office in Scobey.
Shale made us a signed letterhead stating the terms of the lease. After recieving this I signed and sent in my lease and had money in hand in about a week. I did not use an escrow agent. Risky? Maybe, but shale came thru in what they promised.
Patti, every lease states something to the effect of “for $10.00 and other valuable consideration” rather than specifying the precise amount they agreed to pay you. Billy Bob explained why.
Just remember Rule #1: NEVER, NEVER, NEVER, deliver your signed lease until you have their payment IN HAND!
This way you know you receive what is promised, be it $100/acre or $10,000/acre. So plan on using an attorney or bank as an escrow agent for the exchange of your lease for their payment.
Billy Bob, glad Shale treated you right. However, for mineral owners RULE #1 is NEVER deliver your signed lease prior to receipt of payment. This is valid regardless of if you lease to Exxon, Shale Exp., or XYZ Oil, LLC.
Once they hold your lease you have exposed yourself to a risk of not being paid. Unfortunately then mineral owners only recourse is to incure the expense of a lawsuit to recover payment, or to break their lease. That process will take years and cost tens of thousands of dollars.
Alternately with RULE #1, use an independent escrow agent and avoid this potential nightmare. It is now common for Lessee’s to request you send them your signed lease prior to payment. None the less, it doesn’t mean you must do it. Every legitimate operator will agree to use a bank or attorney for the exchange of the lease for payment. The only reason a company would refuse to do this is if they are on shaky financial footing and have a cash flow problem, or if they have some dishonest intent. Instead just exchange the lease for their payment and everyone is covered.
They told me that as soon as they had The signed lease they would send it priority mail. I had my check within a week of mailing in my lease packet. Alternatively, my cousin who lives on the area traded signed lease for check in person.
Patti,
It is not necessarily “null & void”. If you sent them the signed lease, and they fail to pay within the agreed to 90 days, they still hold your lease. If they have dishonest intent they record your lease anyway. In effect they hold a valid lease (even without paying) until you are able to void that contract much later through court action.
On the other hand using RULE #1, if they fail to pay after 90 days you tear up their lease (which the escrow agent holds). This is why you withheld it. This does not harm you or the oil company. When you are paid they get the lease. If you’re not paid their lease contact is void.
It is not complicated. If Shale gave you a bank draft… Take their draft and the signed lease to your local bank. Have your bank hold your lease and submit the draft. When Shale honors (pays) the bank draft your bank sends them the lease. If Shale fails to pay in 90 days the bank returns the lease to you. Your bank should charge $25 to $50 for providing this service. Good Luck.