I inherited mineral rights to some property in Grady County, OK. These rights are divided up along a large number of heirs. Another person who also owns a share to this property told me that they were offered a lease and 3/16th Royalty. The offering company stated that they were unable to locate or had not received a response from any of the other heirs so they gave the total payment to this heir for everyone who did not respond. They signed a contract and received a relatively large payment. This sounds very fishy, illegal and questionable. The company was Allied. Any thoughts or comments on this?
Based on the facts as presented, the company would only have a lease that covers the interest of that one person, unless the person had power of attorney for the rest. Personally, I do not believe what this person told you, as no company in their right mind would do that.
If you read this site, you always see misconceptions and misunderstandings about the land or leasing business. Your source, probably from lack of education or knowledge about the business, misunderstood what the company told them.
Just the other day, on this site, someone wrote that they could sign a second lease because there was no production. Not quite true if the primary term of the first lease has not yet expired and covers all depths. They were not referring to a top-lease either.
Dave, thats my impression exactly. Thanks for confirming it. I am by no means knowledgeable about mineral leasing business but I have been in business for decades in other areas. It just didn't pass my basic "smell test".
Then there is nothing wrong with your nose.
Jesse Sherwood said:
Dave, thats my impression exactly. Thanks for confirming it. I am by no means knowledgeable about mineral leasing business but I have been in business for decades in other areas. It just didn't pass my basic "smell test".
What do you think about this? "Why are my personal mineral interest listed as Chevron USA, Inc. working interest instead of my working interest?" Chevron USA, Inc. is only the well operator. There is no supporting documentation to support otherwise. People are trying to lease my minerals and my name doesn't even come up as the owner, Chevron USA, Inc. does.
Yeah, I cannot imagine ANY oil-and-gas company doing that, just giving a bunch of money due to other persons to one person. There's some information missing here.