A friend signed a lease (without consulting an attorney) and it was one of the most restrictive leases I’ve ever seen. It is locked in forever, even when the property is sold to a new owner. Also in the lease, its stated the property owner will pay production costs which reduces the amount paid to the owner. The owner was very ill and shouldnt have been making decisions but he trusted the land agent. The land agent took full advantage of the situation and had the owner meet him at a neutral place (away from family who could had advised him) and got his signature. Its not only despicable but as far as I’m concerned, should be illegal. Any recourse?
I would consider land agents to be like street hustlers. Whatever it takes. Lying is one of their best assets. When they can’t get you to sign, then the company will send another one in and start the process all over. When they finally figure you won’t sign then they will sue you through a partition suit. The company will stoop so low as to buy an acre from one of the greedy owners that already signed. The company will use that as owning a portion of the unit and say you are holding them up as an owner from development. After they force you to defend yourself which is costly, most will surrender and sign. Then the company will sign the acre back to the greedy owner. If anything should be illegal i’d this tactic should.
I agree with all you said and “street hustler” is a graceful way to describe land agents. Thank you for responding.
Just to clarify, ALL oil & gas mineral leases stay with the lands regardless of whether there is a change in ownership. They will expire or relesse only under the terms of the lease.
It is no different than if you own a building and have signed leases with tenants. If you sell the building, the leases don’t go away. They stay with the building and expire under the term of the lease.
That “shady, carpet bagger” land agent was very likely just following the law. Any attorney would have advised them the same thing.
You’re right. The experienced land agent followed the law to cover his immoral unethical butt. I guess I should have explained a little better but the lease is locked in forever with “no end date”. It wasnt for a “term”. For a gas and oil company, it was the lease of a lifetime.
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