I hope someone has encountered this situation and can point me in a direction that can help my home mortgage lender to understand an oil lease. The situation is that Ninepoint Energy is now going to be Bowline Energy. My lender wants me to provide a current or updated lease with the Bowline . I explained the lease passes to the new owner intact. They demanded I sign a request for any and all updates on my lease. I signed it and then I explained it often takes weeks to get a reply. Even for a voicemail. The verbiage on the original lease is very clear that it’s ‘forever’. I don’t have weeks to wait for an oil company to answer a request for something they know I already have and, in fact, the request may confuse them since there aren’t ‘updates’. Has anyone else encountered a similar issue and had a simple resolution for it? My rate lock is going to expire in less than two weeks. It’s a California lender who’s probably not had an applicant use royalty income as primary income and thus has absolutely no understanding ( even though I explained it in myriad different ways).
Not likely that the name will be change any time soon on the lease, if at all. There is a very similar thread on the forum in the last week or so. Type in “Using royalty income only for loan app” in the search and see if it pops up. It is in the Oklahoma Mineral rights area.
Thank you M_Barnes, I’m at a loss with how to get these people to understand.
You may have to ask for a supervisor with oil & gas experience. California used to have a lot of those. See if you can find the press release that talks about the name change.
Another person that might be able to talk you through it is the President of the California Chapter of NARO (National Association of Royalty owners). He is well aware of how CA works. www.naro-us.org is the main page. He should be listed on the CA page. If not, I will look him up. We serve on the National Board together. My cousin had this same issue and it took some extra paperwork to actually get the bank to understand, but eventually worked out. Just had to have a supervisor at the bank that actually understood the lingo to get the underwriter to “get it”. I can look up your wells and perhaps get a production decline if you want to share the section, township and range. Usually they want three years of guaranteed income, so tax returns. copies of check stubs from the last three years are helpful.
Perhaps NARO could develop a “white paper” for banks so that they understand the issues. Oil and Gas is a strange business that defies normal contractual understanding. I may be able to lend something to the effort.
This topic was automatically closed after 90 days. New replies are no longer allowed.