thanks for weighing in ellis. both offers i responded to were to purchase interest in a specific well. not the entire interest in the (texas) unit. when i talked to them it was obivious the letter and offer meant nothing. it was just a teaser to get people to call in. they only wanted to talk about purchasing the full interest. i have no doubt that they had some real money and a person in a bind may could have negotiated a fair deal.
in the state of texas it is against the law for a car dealer to advertise cars for sale that they don't have. it should be against the law for any company to make an offer that they are not willing to make good on.
"they show you a diamond and then offer you a quartz" , LOL, i said that !
I traded royalty in North Louisiana (Haynesville, Terryville, Simsboro and others) Part-time while doing landwork for a few years and ALWAYS had the cash to close the deal.
I also mailed 'offers' to mineral owners I couldn't locate, but they were firm and REAL. These 'other' tactics make it harder for legit companies to do business.
I love the bait-and-switch reference. lol. Thanks!
Renee, these links may help with your decision as well:
Here's another link you may try for discussion on this interesting topic:
If you sell half or all your minerals in the state of Louisiana and no well is drilled or, no production is produced in that section, would the minerals return to the landowner after 10 years?
2006 Louisiana Code - RS 31:27
PART 3. MODES OF EXTINCTION OF MINERAL SERVITUDES
§27. Extinction of mineral servitudes
A mineral servitude is extinguished by:
(1) prescription resulting from nonuse for ten years;
(3) renunciation of the servitude on the part of him to whom it is due, or the express remission of his right;
(4) expiration of the time for which the servitude was granted, or the happening of the dissolving condition attached to the servitude; or
(5) extinction of the right of him who established the servitude.
Acts 1974, No. 50, §1, eff. Jan. 1, 1975.
Read my blog, confusion is very well defined.
Confusion results when the title is merged. In the case of the servitude, it is extinguished when ownership of the servitude and of the surface is the same person.
Max, no production is needed, only a well needs to be drilled, dry holes restart the prescriptive period. Read my blog on mineral servitudes.
For Royalty, prescription is only interupted by production, or a succesful well test.