leases sold too cheap

Does anyone know of any situation where landowners have been able to void lease agreements when the gas companies paid much less than they should have?

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Permalink Reply by SOLAOGA on July 1, 2008 at 6:12
It is doubtful that a landowner would have any recourse once they sign a lease.
Permalink Reply by Liz Cb2 on July 1, 2008 at 6:16
How do you determine what is too little? Would you pay more for something than you should?That's why you negotiate. You can't blame the O&G companies. Why would they offer any more than they had to? That's why people should ask questions and educate themselves before making decisions. This website has a wealth of information for everyone to share. Just think where we would be today if we didn't have this means of communication? It is unfortunate; however, that there will be some who made their decisions too soon and didn't have access to this info. or they signed their leases prior to the news breaking about the HA Shale. At any rate, they signed a legal document which is binding. I doubt seriously you'll see any leases voided or rescinded.
Permalink Reply by James on July 1, 2008 at 6:20
The leases to which I am referring were signed six weeks before the news broke. Does the gas company not have some responsibility to be upfront about what they think they are leasing. They obviously knew that the bonuses should have been fifty times what they paid. I don't see how that is negotiating in good faith.
Permalink Reply by James on July 1, 2008 at 7:04
Well, CaddoVisitor, nothing is that simple. Thousands of lawyers have jobs breaking contracts every day. THAT is how our country works.

I was just interested to know if anyone knew of any success stories in voiding leases.
Permalink Reply by Scott on July 1, 2008 at 7:15
James,

Very few knew how big this could be. I doubt they even knew it would explode like it has. Imagine yourself applying for a mortgage loan and getting approved at 7% interest rate. Then 3 months later you find out the same mortgage company is offering loans at 5% interest rate. Are you going to call the mortgage company and demand you deserve the 5% interest rate they are now offering. I guess you could and they would probably laugh at you. Sorry if that wasn't the answer you were looking for.
Permalink Reply by Snake Stewart on July 1, 2008 at 10:48
Hello Scott, Yes, It's called refinanceing in the mortgage industry.Sorry about that jab but I just couldn't help it.

I understand and agree with what you were saying! I think it stinks but this is how the "Big Boys" stay Big. Most at the top didn't get there from selling Girl Scout cookies. I know I have used this illustration before but it is so simple and to the fact that I will be forced to continue to use it for years to come on these posts!( Surely it wont take them that long to find us all)

Loan Sharks are frowned upon in most parts of this country.Even our beloved credit card industry has had the reins pulled in on them as of late. In what other Industry besides O & G (and loan sharking, thus the analogy) can someone make a successful deal and have to pay a 75% penalty for something that belongs to them in the first place!
That is exactly what you are doing when you settle for royalties of 25%. I would rather not hear about all the trials and tribulations that big O & G have to go through on a daily basis,all the pain and suffering,all the risk that they have to take.WHAT RISK IS THERE AFTER THE FIRST WELL THAT HITS ?

I could understand that argument from Wildcatters and even the big boys years ago! Certainly not after Barnett and certainly not after Haynesville.If someone clings to that argument today after knowing most of the facts are in the public domain , I would have to question the sincerity of that individuals comments.

The main question that was posed is are their any people that signned early that are trying to or have gotten out of lease ?
I have stated in numerous posts in the past that I don't feel right about condoning this type of action 96 times out of 100.But as you raise this question it is quite strange that a friend and I had this same discussion concerning people that have retained the services of an attorney out of state that has been known, according to the plaintiffs, to have busted 2, O & G deals in past.Whether or not this is the case, I have no idea.I personally think that it is a waste of time and money.I do not see Big O & G leaving some kind of loophole in a contract but stranger things have happened. Heck, I may be the next "Shalionaire". Who woulda' thunk it!

We are talking about a huge amount of money involved here.This aint no popcorn and a movie situation. Millions could climb into the billions of dollars on these loses. Part two of why I think it is a waste wouldn't appy in this case. That being the cost of litigation ! In the normal sized deal it would cost more than the bonus money you are suing over in attorney fees , making it impractical to go this route. Don't try to tell me though that you can't throw enough money around to make a difference in some cases. Look at Louisiana's jacked up mineral code if you need a point of reference . Hello Campaign Finance Reform.
Permalink Reply by Scott on July 1, 2008 at 10:55
Snakestewart,

So you really think you can refinance with the same mortgage company 3 months after your intial loan???
Permalink Reply by Snake Stewart on July 1, 2008 at 11:30
It was a joke , in obvious poor taste.
Permalink Reply by Scott on July 1, 2008 at 13:46
No big deal. I enjoy your input on this blog. Just wasn't sure about that particular comment.
Permalink Reply by James on July 1, 2008 at 14:10
Thank you, Snakestewart. Do you by chance know the name of the attorney who was successful in breaking those O & G contracts?
Permalink Reply by Snake Stewart on July 1, 2008 at 14:20
No sir I do not. I do know that they are from Texas.I would need to ask permission from these individuals before I could say anything else if I had anymore info.I am all about info, but some matters aren't up for public scrutiny. Being in a small community sometimes gives me access to information that is absolutely non of my business. If you know what I mean.I do apologize for bringing this up and not having all the needed intel.I will check to see if they are o.k. with this and then I may be able to give you a name.
Permalink Reply by Earth Mama on July 5, 2008 at 12:48
What if the lease was not notarized, only witnessed? And you havent received any bonus check yet. No notary was present.

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