Over a year ago I signed a lease for a section in Carter County and the paperwork was all legit and the oil company was prompt with the bonus check. The same company leased another section of mine a few months later and the experience was the same.
The only odd thing is that they have not filed either lease with the County Clerk and, when asked, they said that they were just keeping their cards close to their chest and trying not to alert other landmen to the area they were interested in.
My question, since I am relatively new at this, is whether or not this is standards practice or if there is anything to be concerned about. For now, I will not mention the name of the company or the area but am truly thankful for any general insight.
You might receive other offers to lease the same minerals. In my view the leasing company is leaving itself wide open. It could have problems with 1) a dishonest landowner who signs additional leases, 2) a confused owner who signs a 2nd or 3rd lease; and 3) heir of a deceased landowner who are unaware of the previous lease.
If you have been paid you bonuses, I think you should be in pretty good shape.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
Depending upon where you are in Carter, keep a sharp eye open for any pooling cases. Depending upon who you leased with, you may end up on the pooling respondents’ list since the operator cannot see a filed lease either (or they might be holding yours). I make a point to answer the pooling within the 20 day deadline and make the same election that I made with the leasing agent, but say that I have leased with “so&So” as of “date” with the royalty amount just in case the leases do not get filed in time. I do not want to get stuck with a 1/8th pooling when I signed a good lease at 1/4th.
Martha makes a great point. If pooling begun, I would contact the leasing company and also consider filing an affidavit with the land records stating that you signed a lease a copy of which is attached. Also, the notice with the OCC as Martha suggests.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.