Looking for suggestions…A mineral lease was signed and filed around Sept 2019. We still haven’t received our bonus check. I found out today that company I had signed with has been bought. The new company is evaluating the leases that the original company had. It’s looking like they are wanting to terminate the lease agreement and not pay the bonus. Any thoughts?
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Do you have their offer to lease in writing? A deals a deal in my book and the company that leased from you should be the bearer of the bonus imo.
Yes, they even filed it at the courthouse.
You might want to consult an oil & gas attorney that works in OK.
Where are your minerals located? Could possibly be to your benefit if they release you. Grady is pretty hot right now.
Also who’s the company? Some are notorious for these tactics and it’s possible someone on this board has some experience in dealing with them.
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I am not in the hot bed area of Grady county, prices have dropped in my area as compared to what they were when I signed.
You have probably seen this elsewhere on this forum, but never hand over a signed lease without a check in hand. Otherwise a lease flipper will just go out and shop your lease and you may not get paid if he can’t flip it.
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Step 1: See is lease has been filed. Step 2: Depends upon what you have discovered.
Yes, it was filed on 11/20/18
You need to visit with an attorney in the state where it was filed to consider your options.
As you have found out – it’s the wild west out there… Please don’t give a lessee the signed lease until you have a certified check or money wired to your bank. I will fax a copy of the signed lease — with do not file written on each page — to the lessee for them to use with their lawyers — they usually ask for 30 business days to get me a check. I ask for 20-30 calendar days until they get a check(funds) to me. At this point you will need a Release of the lease from the company in order to sign a new lease. Because it is rare for a landman to document the bonus amount in writing it can be tricky for you to recover your bonus. But the advise here to acquire a lawyer is the best if a release or funds are not received.
I agree with Bud. I also require that all leasing offers be made in writing via email or snail mail. I do the same thing as Bud. I have my accountant hold the original lease (after sending a “DO NOT FILE” copy to the lessee) and only turn it over to a live person with a real check-preferably cashiers check. I do not give out my banking information as very few folks get that kind of private information. I also send a confirmation letter stating the terms of agreement and keep a copy in my files including the lease copy. Also limit the time frame to pay to about 15-20 banking days, otherwise the lease is no longer valid. Speeds them up a bit. If pooling is pending, the time frame is short enough to be filed before the pooling order comes out. If I do not see the lease filed by the time the order comes out, I answer the pooling and tell them who I leased with and the amount of the bonus/royalty pair. I select that same pair as a backup in case the lease is not filed in time as I do not want to get stuck with the worst option. If the lease has been filed, then I state the book and page number (just in case).
Looks like you signed 2 leases both of which were filed. I’m guessing the 2nd added acreage. What has been their explanation?
Yes, that is correct. TPR is who I signed with on both leases. After the second lease was filed on 11/20/18, TPR was bought by Paloma Resources. What I’ve been told is Paloma is evaluating the leases that TPR had in this area.
I just spoke with Paloma Resources, they have decided not to fund all the lease agreements in 28-10-7, that haven’t been paid. They will be releasing the minerals and I an free to lease to anyone that may be interested.
They may still have liability for the lease bonus. The trick is whether you have sufficient evidence to support a claim then whether they could pay a judgment.
If they filled the leases of record without payment and other companies were leasing in the area at the time you may be able to claim damages.If the new company bought all of these leases they will be liable.We have seen this many times in East Texas. I am a Landman but can turn you on to attorneys who have done this kind of work before.
Hi Cbottom… i had the same thing happen to me too… but i did finally get a land lease payment but it too 6 months… and i thought i would get a bonus of 2000 for signing it but i only got one payment of 145.00 and no more… they say one thing and do another… and it depends on how many people you share your land with too… i have family members involved… and its now been a year and a half and i still have nor royalties either and they owe me four years back pay plus interests too… i fianally got a divison form to fill out and they have it and now are stalling saying they have to go over the title to the land due to laws have changed so who knows… i may be dead before i see anything. and i live on low income and could use it like yesterday… good luck and read all the stuff on line about the oil companies its a huge headake …
If you are Texas, I know a great oil and gas attorney who helped us a lot. Let me know if you would like his contact info.
You might try the attorneys who are in the directory it lists the following for Texas:
G. Wade Caldwell Caldwell East & Finlayson 700 North Saint Mary’s Street Ste.1825 San Antonio, TX 78205 210-225-1655
Patrick John Flueckiger Attorney at Law 2028 E Ben White Blvd. Suite 240-2425 Austin, TX 78741 512-535-8301