Has anyone been paid by Lincoln Oil and Gas on leases they negotiated since their Incorporation in mid 2012? Thanks for the information!
I signed with Double Eagle (320 acres in N Logan County) in August 2012. It was recorded at the county but I was never paid and eventually I got them to released the lease. I then signed with Lincoln oil who then informed me they were no longer interested last month just after signing and before sending the bonus. WTF! These 'orders of payment' that are included in the lease packet are rediculous. I have signed other leases and the bonuses were promt, not 90 days (or never) holding you captive. The relationship that is developed with mineral owners and operators has to be open and honest. Have others had this experience?
Exactly, I signed with Lincoln Oil in August and they recently reduced my acerage from 225 to 67.5 siting clouds on title. After weeks of trying to get them to send me some evidence I checked one out that was 90 acres on which they appeared to be wrong. I hope not everyone is having these problems.
Mr. Jones, I have had that experience also, although not in your area. I believe it is how business is done now, tie you up without payment, if you are trusting enough to send them an executed lease. Best to tell them to complete title search before a deal. You could send a copy of the executed lease boldly marked copy that they could not record. If they really want your minerals the lessee can execute the lease and then send it to you, so they would have to have a good reason to back out, something akin to you provably not actually being the minerals owner. Good luck and be careful out there.
This should not be the new way business is done. I appreciate the advise and all should consider this moving forward. Be firm but not contrary. I would appreciate Jenna's thoughts on your suggestion as well.
The best practice is to exchange original documents for a check, which can often be coordinated through a local title company, bank or attorney's office. If you have expectation on payment make sure that the check must reach a certain amount before the third party is authorized to release documents. Other options include asking for a shorter time period for order for payment and making it clear as to what happens i.e. no lease if the check doesn't reach a certain amount. You might also consider including the lease a clause that they must provide title information so you can review it as well. Old abstracts on the property can be invaluable in looking into these issues too--so keep those around. If you have a lease encumbering your property that shouldn't, then look at CRS § 38-42-104 as it's intended to avoid that situation. Hope that gives everyone a few things to think about.
The information is for general information purposes only. This should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided.
anything happening with the drilling?
my family owns 50% of 160 contiguous acres in Logan County. Gladly will share all info re T10N-R55W, Sec 20 , SE 1/4
i am new @ having some problems w/communication. I have a wealth of info re10n-r55w, on sec20: SE 1/4. about activity &drilling history. My family has grandfathered rights to 50% of 160 acres (contiguous)) Wes Tucker
Any companies active in logan?