I received a call last week from a group wanting to lease my royalties for two years, they offered $150k and that our royalties would automatically convert back to us. It sounded too good to be true so I politely declined.
Definitely decline is my first gut reaction. Many offers like that say one thing at the top and then the fine print extends the time frame by many years. Get an attorney to read the offer before signing. They are often thinly veiled attempts to get your royalties on older wells (and new wells) because the offering company knows that drilling of new wells is about to happen.
There is a “one year” one going around right now.
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We got an odd offer like that as well.
This might be a good Webinar Topic for NARO members. Sharing a redacted copy of the offers or contracts would be appreciated.
This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.
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The latest issue of the ROAR newsletter from NARO has an article devoted to this topic.
ONE year term assignment ROYALTY "OFFER?" ( circulating in several states. Here is a recent post with the redacted paragraphs that are of concern.
Matt Sands Mineral Rights Podcast also dissects the tricky offer.
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We are planning a session at the National Convention to cover this and other fraudulent issues of concern for members. I encourage you to attend the convention to learn more.
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Hi, My Grandmother fell for this and we don’t know what we need to do to cancel it? I think they still collect on it? Loving County Texas? Any ideas? Thanks
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You would need to speak to a Texas Attorney.