Hi, I’m new! Wondering if there is a good way to vet a company that writes with a lease offer. Wish they had Yelp reviews.
Holly,
What’s the name of the Company? Some of the Forum Members may have had contact with them and can share their thoughts, etc.
Clint Liles
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Thanks for the reply. It was a general question; no specific offer at the moment, but I’ll ask next time we receive. Thanks again.
Talk with other mineral owners in your local area and on this forum. Ideally most good operators in your area should be well-known, and you won’t have a whole lot of guesswork to do.
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Use extreme caution even when dealing with an established company.
Failure of a company to pay a lease bonus is a theme that has been raised in this forum far to often. Below are a few discussions on the topic. It is always best to exchange a lease for a check at the time of the transaction. This may not always be possible because of distance. In such cases it is probably better to have an escrow company or attorney to hold the lease until the consideration is paid.
Sometimes companies file leases without payment of bonuses.
There have been cases were companies take leases but never file them. They return the leases later stating that they were never funded by the company. In the meantime, the mineral owner cannot sign with another company.
It is much easier to prevent the issue than to remedy it after the fact.
Signed a lease on March 2016 for Minerals in T 10N R 05W . Normally I receive a Bonus check within 30days of signing; however, we are now a good 70 days without the Bonus. I did check with the County Web Site and the lease has been filed, and called the landman and he said the checks are going out slowly. The lessee is not a oil company, but appears to be a private LLC. Anyone else had an experience like this? Is it time to contact a lawyer?
I am a member of a family who has had oil/gas interest in Canadian county for many years. I have never been involved as an active member concerning the leasing process and know little about it. I am now in a situation where I need to acquire some basic knowledge before involving an O&G attorney. Our family signed a 3 year Lease Agreement for a certain amount per acre for a known amount of acreage. Through some research the agreement seemed to be a fairly accepted and a standard agreement …
I recently signed a top lease on some minerals in Colorado. The Land Company now refuses to pay the up front bonus money. Do I have any recourse if they have not filed the lease?
Some years ago, there were many complaints that landowners had not been paid their bonus and the lease was filed of record. To help with that situation, I am developing a clause for my Professional Lease Form that reads as follows: 7. PAYMENTS TO LESSOR. Lessee covenants to pay Lessor as follows: (A) SIGNING BONUS: Lessee agrees to pay Lessor a signing bonus in the amount of __________________Dollars ($_________) by company check or in United States Currency. The bonus payment shall be pai…
I recently read a thread about a bonus payment not paid and the lease was signed. Advice was to find out if it recorded and try to null the lease before the fact. This is what I was trying to avoid with Exterra. I want an escrow. I will pay for the escrow costs, just so I have the money before I release the papers. Now this poor guy has to figure out what to do and the advice ranged from hiring an attorney to recording a null on the lease or don't release papers until the money was paid. …
Kodiak O&G retained Lone Tree to obtain a lease from me on mineral acres I own in Dunn county N.D. They sent me leases twice in 2007. I executed, notorized and returned both leases. As both leases looked identical to me I assumed the draft time limit had run out or some such. I followed directions both times and submitted both drafts to my bank for payment. Neither of the drafts were honored, but the lease was recorded both times. Dealing with Kodiak now, they tried to maintain that the leases w…
My wife and I signed and returned a mineral lease letter agreement on 11/30/2018 agreeing to lease our minerals effective 12/01/2018. We signed and returned the lease in December with the agreement that toe bonus would be paid on 01/01/2019. The letter agreement did not have any stipulation whereby the lessee could void the contract. However, the lessee has failed to honor the agreement and has not issued the bonus payment. Do I have good standing for legal action against the lessee to force…
I own minerals in sec20, T7, 2W as well as minerals in sec 17,t7,2w. We signed a lease with ProMinerals Partners. Terms 2,000 per m/a and 3/16. ProMinerals has filed the lease in November 2019 with the county courthouse, but we have not received any bonus consideration agreed upon. It has been 5 months since filing and ProMinerals is not responding to inquiries. They offered to let us out of the lease, but I told them I was very happy with the agreement and didn’t plan to allow them out of their…
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Thank you Richard, this is incredibly informative- and scary! I appreciate the examples and will study them this weekend. Thanks again!
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AJ11
April 5, 2019, 5:45am
7
www.corporationwiki.com is a helpful research site. Respecting Richard Winblad’s excellent post, please consider the following.
By John McFarland
“…First, a draft is not a check (although it may look like one)…”
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Any suggestions appreciated.