Underpayment of lease bonus

Oil and Gas Leasing Help
1

In 2013 I leased two sections of mineral rights in McLain County. I relied on the lessee’s research to determine my net mineral acres. I did compare there research to numbers in the past going back many years and though not exactly the same, they were close enough to proceed. I renewed these leases again in 2016 for a higher per acre rate but the same net mineral acres. I recently sold both sections in December, 2019 and the purchaser through their research discovered that I had more net mineral acres than I previously knew.

Do I, at this point in time, have a legal basis to go back to the lessee and request payment for the NMA’s that I was not paid for?

2

Check the wording in your lease agreement. Generally there are provisions in the description of the mineral interest being leased and/or the section on the bonus payment that say the amount you received covers whatever mineral interest you owned in that property.

3

You accepted their payment so you have little or no recourse.

4

I think you are right but have been told otherwise but it wasn’t a legal opinion. Interestingly, after everything had been signed and I had deposited the first check, the lessee realized they had not paid me for enough acreage and sent another check. I would guess that they felt some legal obligation to do that. Also, the contract states on the first page that if the lessee determines that I don’t have the acreage they paid for, they can ask for reimbursement from me. It doesn’t say the opposite is true but I wonder if it’s not implied.

Thank you very much for your response.

5

I have done that. Nothing specifically states that they are obligated to pay for any additional acreage discovered at a later date. Interestingly, after everything had been signed and I had deposited the first check, the lessee realized they had not paid me for enough acreage and sent another check. I would guess that they felt some legal obligation to do that. Also, the contract states on the first page that if the lessee determines that I don’t have the acreage they paid for, they can ask for reimbursement from me. It doesn’t say the opposite is true but I wonder if it’s not implied.

Thank you very much for your response.

6

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