COBRA PETROLEUM COMPANY OFFER LETTERS: PROPOSED LEGISLATION

I have been asked to help procure copies of letters by Cobra Petroleum Company for a state civil law review.  I am not privy to all the details. What I know is that a Shreveport-Bossier area legislator has asked for a review of civil law as it pertains to unsolicited offers to purchase mineral rights.  GHS members have discussed these letters in the past and I have personally attempted to get local media to cover them with little success.  The letters will be redacted so that the recipient(s) and their personal information will remain anonymous.  It would be most helpful to the committee that will review the law and the practice of sending unsolicited letters seeking to purchase mineral rights which include a draft which can be confused for a bank check.  Anyone who would consider providing a copy of their letter can send it to me by off site email by "friending" me and getting my personal email address from my member page.  Please attach a scanned copy of the letter to your email.  You may redact your personal information or request that I do so for you.  If anyone would prefer to mail their copy please send me an email and I will provide a mailing address.  Your assistance in this matter would be greatly appreciated.

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1kw6x71km1v37Permalink Reply by 1kw6x71km1v37 on December 4, 2013 at 5:11

Who is going to conduct the review?

This should be an interesting test of the right to contract between parties if the reviewing body has any legal authority.

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2013 at 5:18

cs, I don't know the official name of the standing civil law committee.  I didn't ask.  One of the attorneys on the committee who is aware of my interest in this issue asked me to provide copies of Cobra letters and to perform associated research.  I believe the scope of interest is wider than just Cobra and that the facts and conclusions will be made available to state legislators.  Obviously one or more legislators has an interest in this issue and has requested that the committee review it.

Permalink Reply by Joe Aldridge on December 4, 2013 at 13:12

Skip,

Does this mean that some legislator is going to try to restrict an individual's right to get unsolicited offers to buy or lease minerals? Don't really understand what the purpose of this is. 

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2013 at 13:20

Joe~

I don't know the legislator's specific intent.  I do know that there are problems with the manner in which Cobra solicits mineral owners.  I don't know if anything will come of the civil law review but I am glad that an elected official is looking into constituent complaints and that there are professionals who serve pro bono on the civil law committee to provide analysis and opinion.  It is relatively rare that mineral owners get any action from elected officials regarding their mineral interests so I'm not inclined to jump to any conclusions. 

Permalink Reply by Joe Aldridge on December 4, 2013 at 13:27

The problem is how do you restrict one company that is taking advantage of people and not restrict all others. This is where government comes in and takes rights away. That would put most of you landmen out of business. Most of the land leased or minerals sold is through unsolicited contact. Where will this end. Will a land owner have to hire an agent to market their minerals either for a sale or a lease?

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2013 at 13:35

Joe, you  seem to want a debate based on your supposition of the intent of the legislator.  I've been asked to gather information on Cobra because I have expressed concern regarding their business practices.  I have no knowledge indicating this review is limited to Cobra and suspect that it is not.  As I stated previously,  I don't know all the details and I'm not jumping to any conclusions.  Until more is known, I suggest you do the same.

Permalink Reply by Two Dogs, Pirate on December 4, 2013 at 13:12

I can remember a mineral deed in Sabine Parish that was to Cobra or another like Cobra that described the property as everything the person owned in Sabine Parish.

Permalink Reply by Joe Aldridge on December 4, 2013 at 13:38

This legislator should be contacting the Attorney General and getting him do an investigation of this group and any others that are doing things that are illegal. Writing new law to keep someone from making an offer is way over the top. If he is building information to take to the AG then fine.

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2013 at 13:43

You are incorrect.  This is a standard review mechanism utilizing a standing committee of legal professionals that is available to any legislator who wishes to gather information on an issue. 

Permalink Reply by Two Dogs, Pirate on December 4, 2013 at 15:14

When I buy a lease, I would describe the property with the description on the deed of acquisition. How can you buy something when you don't properly describe it? This way of doing biz that some of these folks use is kind of like a Quit Claim Deed which may be the weakest conveyance that exists. I don't think I have ever seen a Quit Claim Deed that didn't try to at least try to properly describe the property. Why wouldn't we want to keep the snakes out of doing their dirty work in Louisiana?

1kw6x71km1v37Permalink Reply by 1kw6x71km1v37 on December 4, 2013 at 15:41

I have never heard of civil law review committees nor read of their statutory authorization. But I suppose a legislator could convene such a body out of thin air, especially around election time.

It leaves me wondering if this review committee would also be interested in any over-the-top solicitations that mineral rights owners may have sent to O&G companies over the years. LOL.

Permalink Reply by Skip Peel - Mineral Consultant on December 4, 2013 at 15:50

It is a standing committee, not one convened by a legislator.  The committee has no statutory authority.  It is advisory in nature.

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