My grandfather (deceased) bought many mineral rights to about 160 acres. His will stated all living children, and their children would have right to these rights. These rights were then passed down to my parents (deceased) to myself and brother.
We have had many leases on these properties and received monies off of them.
The dilemma is a new contract has come up with Western Land Services and Iron Forge Explration, LLC. We sent in our signed contract and was rejected. The many cousins that are living had their leases signed comeback with monies.
I have trying to call the gentleman that were in negotiation with and he has turned off his phone. The companies mentioned above will also not return any phone calls or emails.
I am baffled at this. We did our own research and have a copy of my grandfathers will.
I just scanned over your past posts and if the company was only offering you 1/16 royalty then they did you a favor by not leasing. That is a very unacceptable royalty anywhere in the state of Texas......that company would take your lease and flip it to another company and make them some big bucks if a good well is drilled. And in Cherokee County,,,, Tanos, Jamex and Breitburn are completing some very good Cotton Valley gas wells.
Celesta, What abstract or Section are your minerals in? I can check to see if there is activity or production close by.
there are other companies in the area. I leased to one not too long ago that works all over the county, they might be there also. Doesn't hurt to ask. I can give you their email or you can check out their website. feel free to add me and I will give it to you. I don't know if your allowed to give out info on here. I can also tell you a few to stay away from! Also, is that western land company out of Colorado or Montana. I believe I have heard of them but not sure if its same company or not
Not qualified to give legal advice, just repeating what I have been told that if the lease does not come back with consideration there is no binding contract. Before you spend a lot money on an attorney you might see if you can find out that is so. If your cousins lease were taken first the lessee may have just lost interest or had a change of plans, happens a lot. Your lease being rejected doesn't necessarily mean there is a title problem. I got rejected one time for being Methodist. Just joking.
Good Morning Celesta. After checking the area where your minerals are located I find several horizontal wells drilled by Forrest Oil Company in the area. They are drilled into the Pettit formation. I see no way these wells will ever pay for themselves at today's oil and gas prices. These wells are oil and gas producers but they are not good producers. For instance well 31491 was put on line in 2015 and now is only producing 15 barrel oil per day and 2 million cubic feet of gas per month. That ain't much.
Thank you so much for this information. I appreciate your feedback.
It still bothers me however that my cousins got their checks and contracts. My grandfather made sure that all of his grandchildren recieve benefits and I am struggling with that fact. I also want to make sure that there are no battles for my children when they inherit these rights. I don't understand these contracts apparently and may be just a one time thing.
We are receiving monies for Forrest Oil Company off our properties.
The reason of rejection was "subject to its approval of title" if this helps.
I still don't think its a title problem. Sounds like they changed their mind. If they wanted to lease they would let you know what curative measures are needed to clear any title issue.
The fact they didn't give you a reason in writing regarding questions about your title leads me to believe there is some other reason. My cousin got a lease, I didn't, and we have the same title up to our parents partition of the home place.
You might try sending them a letter that has to be signed for expressing your concerns and asking for a written response as to why the lease was not paid.
I have emailed the CEO, President of the company and have left numerous messages with no response. At this point it is just the principle. They were so anxious for us to sigh and then dropped us like a hot potato. Maybe this is their procedures but I still would like some common courtesy which may not be used with these companies.
Again, I appreciate your time. I will write that letter.
Celesta…I agree with Ric…I think the company changed their mind about drilling the well considering low production numbers in this area and stagnant oil and gas prices. At 11,000’ in this area they could drill a Cotton Valley gas well.
Clint Liles
