Replies to This Discussion

Permalink Reply by OLD HILLBILLY on July 26, 2008 at 10:28

I, not sure but i think if the lease is sighned and recorded its solid , but check with a oil and gas lawer

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Permalink Reply by Ed on July 26, 2008 at 11:52

Thanks... That's the problem. Don't know one I can trust to have my best interests in mind.

Thanks again !

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Permalink Reply by Ed on July 26, 2008 at 11:53

Thanks Jim...

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Permalink Reply by Ed on July 26, 2008 at 11:55

Thanks Sue.... Doesn't sound good. I can't just take it though.

I'm determined to find a decent lawer that has some moral fiber. Surely one exists?

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Permalink Reply by Carver on July 26, 2008 at 12:01

There are thousands and thousands of people around here in the boat with you, Ed.

If leases could be overturned because landowners leased too low, there'd be enough lawsuits to occupy the grandchildren of those lawyers currently practicing in NW LA... including one or two which I would file.

Anyway, I'm hearing that very many local lawyers are on retainer to the mineral companies now.

But good luck with it.

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Permalink Reply by John B on July 26, 2008 at 12:11

actually, this case is different because the dad signed a new lease.
in the other cases, the oil company was merely exercising a pre-existing right to renew. (these people have absolutely no case against the oil company ... they agreed in the original lease to allow the oil company the right to renew.)
but, as i read it, in this case, the father signed a totally new contract. that's a different ball of wax.
now, that contract has to stand up on its own.
most likely, it will.
but, the validity of the contract could be challenged if one of the elements of a contract are lacking. see below.
the odds aren't good, and, you have to weigh legal expenses vs. potential gain.
however, the point i am making, these cases are not similar.

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Permalink Reply by Carver on July 26, 2008 at 12:54

Hey, John. I was assuming a new lease. In the past two years, lots of people have leased for $200/acre, and a whole lot of people are very very mad about it.

I just don't see how there's any hope. You make good points about the validity of the contract, which can be argued with any contract, but the issue of being underpaid doesn't have a chance on its own, I think.

Broadly, the only thing I can see is if the mineral companies somehow illegally withheld info, and I don't even think that would work, but I'm no lawyer.

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Permalink Reply by John B on July 26, 2008 at 20:24

carver, i absolutely agree with you. certainly, the issue of being underpaid is not a compelling legal case.
as to your second point, that the companies withheld information, i'm not a lawyer either, so i don't know their responsibilities to inform the landowner.

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Permalink Reply by John B on July 26, 2008 at 12:01

how old is your father? how capable is he in handling his affairs?

for a contract to be valid, it requires the following four elements: agreement, consideration, capacity and legality.

"capacity" means the ability to understand the contract you are signing.

if one party lacks "capacity", the contract can be voided.

just a thought....

of course, this is only one way to challenge the validity of the contract. you would need to talk to an attorney (most likely, an oil and gas atty) to see if there are other ways to challenge the contract.

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Permalink Reply by Ed on July 26, 2008 at 18:22

John B and Carver,

Thank you both for your input. I know that there are many others in the same situation lately. I guess the only thing that let's me sleep at night is that I know that one day these people will get what is coming to them, and it aint gonna be pretty !

The new contract to drill deeper was sent along with a check just before the big news broke. They knew full well that they would be paying much higher lease payments in the coming weeks and were getting everything they could secured before the new got out. I have an uncle that was in oil for years that says that these companies can't withhold such information when entering into a new contract. If there is such a law or binding condition in respect to a new contract I would sure like to know about it. My guess is that if such a law existed then like Carver said there would be more lawsuits than anyone could ever settle.

I'm still going to look into finding a lawyer to see it there is any way. I am curious if there is any talk of a class action suit. I guess that just because some company has no morals or ethics doesn't carry much legal weight...

Thanks to everyone for taking the time to respond. I haven't given up yet !

Ed

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Permalink Reply by John B on July 26, 2008 at 20:27

ed, look on the positive side!
one of two things has to happen in the next two years:
1. the gas company has to drill on your father's land (and your father gets royalty revenue), OR
2. the gas company doesn't drill, and, your father can sign a new lease with fresh negotiations.

either way, the chickens come home to roost within the next two years.

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Permalink Reply by insomniacnla on July 27, 2008 at 5:59

Ed,

There is a thread on here called Class Actions Lawsuits I think. Since most of these deals the o/g company made were "leases" and not a "sale of real estate", I don't know if the oil and gas companies have any duty at all to inform anyone about the value of their leases. If the landowner asked many, many questions and was lied to, I think that would be the only way and then the landowner would have the burden of proof in court to try and PROVE what the landman said. Unless the landowner had someone hiding in the closet with a tape recorder, it would be tough to prove in court.

If the landowner received a lease and check in the mail, and accepted and signed it without asking any questions....it would be hard. Many people just did not know, including my family, friends and neighbors. My neighbors all signed months ago and I would not. The landmen out here told all my neighbors that a well would not be drilled in our section because of ME and it was all my fault. People I have lived by for 15 years do not speak to me now because of it. Now, I have been offered $20,000 per acre and they signed for $300.00. per acre.

I hope that at least your family has a well that is drilled and that will produce enough money in royalties that you will no longer be concerned with the loss of the bonus money. Don't let it eat you up, then the o/g companies will win even more.

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