Replies to This Discussion

Permalink Reply by Cathaus on August 23, 2008 at 3:30

Seems odd that they would be padding up when they haven't run the title. I think that you should deny them accessibility and not allow them back in until you have a check in hand!

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Permalink Reply by thunder on August 23, 2008 at 3:34

The pad is not on my land. It is in my section. I would have told them to carry the behind if it was on my land.

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Permalink Reply by Grice on August 23, 2008 at 3:32

Since he altered the verbal agreement, you could follow with your own alteration. Inform him that, upon the clearance of the draft, you will sign the final lease agreement. Until the draft clears, you will sign nothing more than a letter of intent to lease. I would also shorten the time for which the draft is allowed to be held. If the draft does not clear within 14 days, the letter of intent will terminate. The letter of intent would protect both of you, as you will be obligated to sign the lease in due time, and he will be obligated to uphold his offer. If his reasons for altering the verbal is legit, then he should not find your request to be burdensome (with the exception that he has a shorter time to finalize the lease).

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Permalink Reply by thunder on August 23, 2008 at 3:36

I will try this. Thanks

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Permalink Reply by Robert on August 23, 2008 at 3:33

Not being unreasonable at all. When the leasing first started and most of the O&G companies were getting leases for say $100 or so an acre a lot of them were cutting checks on the spot and were getting leases signed on the spot.

If your request was agreed upon by the company then that was the agreement. I would simply tell him, that was the agreement and until that agreement is met and fullfilled you are open to offers from other companies. That may get him in gear a little more.

Now if you think the best deal you can get is with them and you dont mind waiting then play by there new terms on waiting for your payment, but if nothing else I would tell them that 30 days is fine but you want a clause that if you do not recieve your payment within 30 days as stated and through no fault of your own (meaning your title is clear) that they pay you an additional 25% of the lease. Then that should also get them in gear to get your deal complete.

The best thing you can keep in mind would be, bottom line it is your minerals and like my dear old dad always told me, "People will do to you what you let them".

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Permalink Reply by Jack Blake on August 23, 2008 at 3:40

The bank draft is pretty much standard procedure. The 30 day wait is pretty much standard procedure. If you are happy with the bonus paymens and lease terms you may want to accept bank draft if from a reputible company. Who is the company you would be signing with.
If they are already going to drill for sure you should get at least $10,000.00 per acre.
*disclaimer
This is just Jack Blake's take on it. I have been correct - I have been wrong - I have been half right and half wrong.
Jack Blake has spoken!

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Permalink Reply by Grice on August 23, 2008 at 3:48

"...if from a reputible company"

Can you provide a list of these "reputable" companies? Also, can you provide a list of all the non-reputable companies?

Thanks.

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Permalink Reply by Jack Blake on August 23, 2008 at 3:57

Grice and KB - Don't be a hater!!!!!!!!!
To me a reputible company is one of the big players. To me a non- reputible company is a speculator who wants to lease you so he can flip it to the big boys.
As far as the 30 days being standard procedure and you saying the oil companies do whatever they want I agree.
When I got my draft it would be good 30 days after it was presented to the oil company bank for pauyment. The first time my bank sent it to theirs they returned it to my bank because my banker made a small mistake in submitting it to their bank. This caused me to wait about 45 days instead of 30 days to get my money. They got to keep their money an extra 15 days. Pist me off. but I'm not a hater!!!!!!!!!!!
JSo let it be written, so let it be done sayeth Jack Blake!

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Permalink Reply by ETOilman on August 23, 2008 at 10:18

Jack... I think you are safe. The "big boys" have made the playing field too expensive for speculators. I recall a week or so ago that the leasing had apparently slowed down, however I think that with the bonus monies so expensive now, the big boys have a pretty good idea that the land will still be there unleased until a good, fair, large bonus is paid. Why get in a big hurry? They have effectively weeded out the days of buying and flipping the leases in this play. They will do the same for pipeline ROW's as well. That is fine with me. Whatever the market will bear.

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Permalink Reply by Snake Stewart on August 23, 2008 at 10:28

If being a big player makes one reputible in your eyes ...... So let it be kept to yourself next time. Those big boys are giving bad paper as well as the smaller ones. Giving you 60 to 90 day paper as well. Is this to be the newest standard ?

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Permalink Reply by ETOilman on August 23, 2008 at 10:31

I believe that he can post his opinion on this site. He should not let it be kept to himself.

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Permalink Reply by insomniacnla on August 23, 2008 at 3:51

Thunder,

The o/g company certainly has the knowledge and manpower to go run your title NOW so that you do not have to be paid by a draft if you do not wish to. You can also stand by the original agreement and hold out for the payment method you wanted.

You can also speak to your landman's superior, say that you have a lease and lease terms agreed to and you are ready to sign and that the landman is ignoring your agreement. You can also call the o/g company at their corporate office, it might get their attention.

Our checks were ordered this week, we will sign when we receive the corporate check. You can certainly wait to sign until you are paid. They do it all the time.

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