Previous owner signed lease for mineral rights
I just found out that the previous owner of my property signed a lease for the mineral rights - they failed to tell me this and it was not in any of the documents from when I bought the place. The lease will expire 1 year from now. I went to a meeting and found out about the lease and the man said something about I can go ahead and sign a new lease with them that will take affect once the old lease expires. They will pay a percentage of the bonus money now and the rest once the new lease goes into affect. How would this affect me if there is production before the old lease expires? The same company that I am meeting with also holds the old lease.
Views: 73
Replies to This Discussion
-
Permalink Reply by Randy on -
It's called a 'top-lease' and they will give you a small portion up-front. If the lease does NOT expire for some reason they may or may not expect you to pay them back. Find out. Get it in writing in the lease of course. Tell them you would like a no warranty clause that goes as far as saying "monies can not be recovered, not even so far an extent as to any royalties, bonus monies, etc etc"
Randy
-
Permalink Reply by Tracy on
-
Thanks Randy, Do you know if they will give me a copy of the lease if I asked for it? The previous owner will not return my calls.
-
Permalink Reply by Tracy on
-
OK, confused again! Sorry I am an idiot about such things!
"you have the same position as the previous owner" does this mean the lease was transfered to my name when I bought the property?
-
Permalink Reply by po boy on
-
I think he means that it your repsonsibility to let them know you now own the property. How else would they know until it is time to resign?
-
Permalink Reply by Tracy on
-
I had no idea the lease existed until yesterday! There was a neigborhood meeting with Chesapeake, they are the ones that informed me that previous owner had leased them the rights.
Previous owner claimed they "received letters from several companies but they never signed anything". They said they would send me copies of everything but they never did. I gave up trying to contact them after over a month of trying.
Sorry folks, I am an idiot about such things!
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
