I own a number of mineral interests in Oklahoma much of which is leased. During the leasing process, the leasing company payed for the title search. I also own some mineral interests in Colorado. These are in the process of negotiations for leasing. I have been told that I will be responsible for the Oil and Gas Title Attorney's search fee, which is a considerable cost. While I understand the need for a clear title, is it typical in Colorado for the mineral owner to pay for this cost? Thanks
Cynthia:
I have never heard of a case where the lessor paid for the title search. This is not to say it has not happened to others but if I were faced with your situation, I would decline the offer and market my minerals elsewhere. When I lease, the lessee handles all the title search matters. In my opinion, this is the duty of the lessee not the lessor.
Ms. Shoeppel, you might counter with no warantee of title with broad disclaimer of liability for title errors and the lessee leases from you at their own risk, no monies returned, or just tell them to take a hike, the cheap charlies.
Craziest thing that I have ever heard of.
Cynthia, this has nothing to do with your minerals being in Colorado. I've never heard of this before. It is rather like asking you to pay for their postage in mailing a Lease to you. The title search and the postage are just part of THEIR cost of doing business. I'd strongly suggest you just say "no" and find someone else to lease with.