Who is honoring and not honoring their Lease Bonus drafts?

There has been a lot of concern and wonder as to which o&g companies are going to pay up when their lease bonus money drafts come due and who are going to let the leases simply expire. I think it would be helpful for everyone if you have a draft that has recently been honored, for you to post 1) the date the draft was made, 2) the date it was honored, and 3) the o&g company who honored their draft. And if you have been told by an o&g company that they will not honor their draft, that would be helpful too. Also, the bonus/acre amount honored or not honored would be helpful. I think this will give everyone a better idea about what to expect with outstanding drafts from the various companies.

Thoughts?

Tags: Bonus, Draft

Views: 421

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Replies to This Discussion

Permalink Reply by EAST TEXAS on November 17, 2008 at 13:17
Parker, thanks for the advise but I am one step ahead of you. I found out today draft returned, lease was filed the day after I signed, and have an appointment with one of the best oil attorneys (so I have been told) in the morning at 10:30. He did not want to do anything with them when it was just the draft not paid, but when he discover the lease had been filed at courthouse, that was a different story. I will let you know, maybe you need to try law school.
Permalink Reply by Phillip H on November 17, 2008 at 14:01
I recieved my check today from Devon and it came 5 days before the draft was due! I signed on 9/22/08
Permalink Reply by Phillip H on November 17, 2008 at 14:04
I recieved a check from Devon today 5 days before the draft was due! I signed on 9/22/08
Permalink Reply by ALongview on November 17, 2008 at 15:20
It looks like the companies that are paying on their outstanding drafts are the companies that operate within their cash flow. The ones that rely on leverage are out of luck at the moment and are having a hard time raising cash. Things will get better but it will probably be a while.
Permalink Reply by Desparate Landowner on November 17, 2008 at 15:39
my draft didn't become reality until the very last day [8-22-08] when I personally called the head honcho at the leasing office in Arcadia and he overnighted the check to us. Continental Resources is the benefactor but the leasing company was Louisiana Oil Group, LLC out of Carenco LA.
Permalink Reply by BirdDawg, plain ole' idiot on November 17, 2008 at 15:41
D.L.,
Glad you got your money, but who got your lease?
Permalink Reply by Tom L Hess on November 17, 2008 at 16:27
We signed a lease with PetroHawk who was represented by Acadian Land Services. We received a 30 day draft ($400,000+) which was sent from our bank on October the 6th and was funded via wire transfer by PetorHawk's bank this past Friday (11/12/08). I know of at least one other lessor whose draft was funded approximately two weeks earlier than ours. However, we live out of state and went through multiple iterations on several of the forms before they were correct. It certainly appears that PetroHawk is living up to their commitments. Hopefully all of the other O&G companies will eventually live up to their commitments.
Permalink Reply by groovy grove on November 18, 2008 at 10:07
DOES ANYONE KNOW IF THE CHESAPEAKE IS GOING TO PAY THE BROKERS? OR HOW DOES THAT WORK WITH THE BROKERS? BECAUSE NOBODY THAT LEASED WITH JWPORTERS AND ASSOCIATES IN SHREVEPORT LA. AS OF THE 17TH OF OCTOBER HAVE YET TO BE PAID. ANY NEWS?
Permalink Reply by The_Baron on November 18, 2008 at 10:16
It depends. Sometimes the brokers pay the drafts, sometimes the operator pays the draft.

Look on your draft. Where is the receiving bank?

If its in Tulsa, probally CHK paying. Of course they may have opened accounts in local banks.

Bottom line....Call your landman or broker. See what they have to say.
Permalink Reply by groovy grove on November 18, 2008 at 10:37
the receiving bank is first louisiana bank in shreveport la. the broker jw porter said that he did not know if they were going to honor these drafts they are waiting on chesapeake. i think they already know they are not going to honor them and just want to keep people hanging on the matter. have any more ideas?
Permalink Reply by The_Baron on November 18, 2008 at 10:40
Sounds like they are waiting on money from CHK.

Call CHK, otherwise send a demand letter to CHK asking for imediate payment by check or a release.
Permalink Reply by EAST TEXAS on November 18, 2008 at 11:06
Chesapeake is not honoring binding filed leases in Harrison County, Texas. The leases are filed in the Courthouse and they are still returning the drafts unpaid. So, they probably are not honoring those over there. They have really stepped on alot of toes over hear, and drafts will be a thing of the past due to the way they have conducted their business.

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