I have reason to suspect that the number of acres in our current lease in section 7, 1N, 4W in Stephens county is incorrect. Since the lease was signed back in 2017, do I have any recourse? Can I get it corrected when the lease comes up for renewal in 2020?
Thanks, Lora
If you have proof of the error, then you may be able to adjust it. If you have more acres, you can lease the rest now. If you have less, then could ask for an adjustment, but you would have to return the bonus that went with those acres. If a well is drilled before the lease expires, then the division order title opinion will probably catch it.
Lora:
Unless specifically put in a lease, the number of net acres is not shown on a lease. Only the gross acres for the tract being leased is shown. And, any recourse would more than likely not be worth the $$ involved.
Be prepared with proper documentation when/if you lease comes open to lease again to show why you believe your numbers are correct.
Todd M. Baker
Thanks for the suggestion.
You sure you’re not confusing GROSS acres with NET acres? How’d you discover you might have been under paid?
Lori, Todd is correct that the net acres will not be shown on the lease but the lease offer in the form of a letter from the lessee will show the exact number of acres they propose to lease from you.
The history here is I was looking at lease agreements that my mother had signed over recent years. I noticed that in one case the NMA was 2 acres less on the 3-year lease offer than a buy offer she had received. This prompted me to investigate further. She was in fact shorted in a previous 3-year lease, but the subsequent lease renewal had the right amount. So the good news is the wrong was corrected (luckily it was just a lease and not a sale).
The lesson is folks need to pay close attention and know what they have as mistakes happen. Thanks everyone for your responses. This forum is very helpful.