Replies to This Discussion

Oil & Gas ProPermalink Reply by The_Baron on October 30, 2008 at 10:27

Many companies will record the lease as soon as you sign. Somtimes they will wait until they have a block of leases to record. It depends on how competetive it is. The first lease in the courthouse is the one that counts regardless of the date on the lease.

If you are worried about a draft not being paid, don't accept one. Demand a check. Just keep in mind that if there are title problems they WILL come back for their money.

If the draft is the only option, ask when they will record the lease. If you want them to wait, get an agreement in writting. If they won't agree to this, but you still want to lease and the draft goes unpaid, you will have to demand that the file a release ASAP. If they ignore or refuse your demand, you will have to file suit. If the draft goes unpaid, keep good records, get whatever information you can from your bank.

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Permalink Reply by RJ on October 30, 2008 at 10:43

Well in this case a Draft has already been handed out. The lease has not been filed though. To me a lease filed with just a Draft that could go unpaid is a RISKY situation.

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landownerPermalink Reply by c f on October 30, 2008 at 10:57

Rj that's exactly how I feel. When the landman asked for our original I refused to give it to him. He has a copy that should be sufficient. If he won't make the draft good now, why would/should I trust him with the original lease and a check that he could stop payment on. We're have enough headaches now, no need to add to it.

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Oil & Gas ProPermalink Reply by Two Dogs, Pirate on October 30, 2008 at 12:24

Envelope Draft

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Permalink Reply by RJ on October 30, 2008 at 12:44

hmm Well I hope this is the case. I have a real problem with a lease being filed and no payment to the landowner.

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Oil & Gas ProPermalink Reply by The_Baron on November 4, 2008 at 5:09

Somtimes the landman will simply exchange a draft for a signed lease.

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