landowner

"Accidentally" selling your minerals

A lot of people I know are getting letters with authentic checks wanting to buy all or a portion of one's minerals. These checks address the name of the well, serial no., so they would be confusing for a person waiting for his first mineral royalty check. It is my understanding that if these checks are signed and cashed by mineral owner, it constitues a sale of the minerals as it translates to acceptance of purchase offer for minerals.If you have  family members, neighbors, friends, please make them aware not to cash one of these checks. A neighbor received one today and was about to cash it thinking it was their first royalty ck. It wasn't from the co. they are leased with, but they thought the company they were leased with had transferred their minerals. We talked them out of cashing it until they talk to co. they are leased with as they still think it is a royalty ck. Maybe I am wrong in thinking that cashing one of these checks constitutes a sale. Can someone enlighten me on this?

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landownerPermalink Reply by Checkmateking on October 18, 2010 at 14:23
fools and their money are soon parted

landownerPermalink Reply by kittycatmama on October 18, 2010 at 14:59
CMK, I think a lot of the people in the shale are uninformed. A lot of people do not have the internet or even have knowledge of the internet, so they don't access sites like this that are very informative. Also, a lot of elderly people have poor eyesight and might think this is a royalty ck. The check my neighbors got actually looked like a royalty ck. I may be mistaken. Maybe cashing one of these checks is not enough to constitute transfer of mineral ownership. Maybe one of the O&G pros on here can tell us.

landownerPermalink Reply by Jack Blake on October 18, 2010 at 15:04
Checkmateking,
We need to try and help all landowners get the full value for their minerals, no matter what they do with the money (as long as they don't let the O & G folks legally steal from them.)
Are you a mineral owner and member of the Oil & Gas Company people?
Off with the heads of unscrupulous O & G people howled JB!!!!!
Knowlege and power to the mineral owners is the rallying cry of the day!!!!!
JB
Permalink Reply by S.H.M. on October 19, 2010 at 5:24
Hey, no third person; what's up? grin
Permalink Reply by S.H.M. on October 19, 2010 at 5:24
Oh, I didn't read very well. I see third person is still there.

landownerPermalink Reply by Jack Blake on October 18, 2010 at 14:24
damn!!!!! That's horrible. off with the heads of the unscrupulous O & G's howled Jack Blake!

landownerPermalink Reply by Mac Davis on October 18, 2010 at 14:53
IANAL

You might be able to get out of such an agreement on the basis that you didn't understand the terms of the contract.

It would probably take a lot of lawyer money to fight such an agreement. Your odds of winning may be pretty low, too.

I wish they'd outlaw "a check is a contract" for all except for very limited circumstances.

Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant on October 18, 2010 at 15:21
The offers to beware of include a mineral deed, not just a check. Cashing a check in and of itself constitutes nothing. Cobra is the only company sending checks and deeds of which I am aware. When in doubt take the check and any correspondence to the bank and ask for help.

landownerPermalink Reply by Jack Blake on October 18, 2010 at 15:26
That's good to hear.

Hey kittycatmama,
Who did your neighbors check come from?

landownerPermalink Reply by kittycatmama on October 19, 2010 at 11:36
Not my neighbors, but friends of my neighbors. They won't even say who it came from. Some people ask for problems.

Oil & Gas ProPermalink Reply by Two Dogs, Pirate on October 18, 2010 at 15:46
Cobra is a snake with some of the strongest poison.

landownerPermalink Reply by kittycatmama on October 19, 2010 at 2:06
Sad thing is that the people wouldn't tell my friends (their neighbors) anything about the check. Their paranoia about sharing anything about their minerals (and I have seen this before--no one wanting to share info) could cause them a lot of problems. They are leased, so we told them to contact their company and they were willing to do that. Sometimes you just can't save people from themselves.

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