Does anyone have any experience with Rock Creek Land & Energy? If so, did you find them reputable? We’re they honest in their lease? I have a lease offer and Order of Payment from them and it’s not something I would want to sign without several changes. Thank. you for any help on this company.
It would be advisable to have an attorney to look at any draft lease. Most of them are not in the mineral owner’s favor. I will not deal with an order of payment because usually, they have an extensive time line that is not in the mineral owner’s best interest either. I will never hand over a notarized lease without getting payment first. My accountant holds any leases until the payment is received. Then they will exchange the lease for the funds. It your gut says something is off, ask for professional help.
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Thank you. It’s not much of an interest but I want what I can reasonably get. I wrote the Land person and said I will not sign the Order of Payment and gave them my terms which are simple and fair with all garbage jargon eliminated. Thanks for your help as usual. You are the bright star in this forum (: Oh yes it says the Project name is NWOK Have you heard of it?
What section, township and range? Make sure that you don’t have any post production charges, shut in timing and payments clearly outlined, commencement of drilling and about 15 other clauses that an attorney would recommend.
It is section31, Township 15 Range 20 West Lot 2. I did the no deductions however and they agreed. However, at the end it says,” however, Lessor’s share of any such costs which result in enhancing the value of the marketable oil gas or other products to receive a better price may be deducted from Lessor’s share of production so long as they are based on Lessee’s actual cost of such enhancements. However, in no event shall Lessor receive a price that is less than, or more than, the price received by Lessee.” Is this normal and acceptable verbage? I am thinking I should strike it.
That clause puts all of the deductions right back in. I suspect that you have some other clauses in the lease that are not favorable and some are missing that you need. Always wise to get a good oil and gas attorney involved in a contract that will affect you and your heirs for years to come.
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Thank you Martha. I appreciate it.
I use an exhibit covering several things like deduction, Pugh, depth, etc. Companies pretend to provide “no deduction” clauses that aren’t effective as Martha points out.
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