Replies to This Discussion

Permalink Reply by LN on November 10, 2011 at 13:30

Thanks for this info.

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Permalink Reply by Texas Gal on November 14, 2011 at 20:11

I immediately rip the check into.  However, I failed to do that on one offer and almost mistakenly cashed the check thinking it was one of my royalty checks that I hadn't taken to the bank!  I was in a hurry and as I was getting ready to endorse the check, I noticed that the color of the check was different.  Whenever I looked at the company name, I got a sick feeling about what I had nearly done in error!  I own over 500 acres of minerals and tragic wouldn't have been the word if I had cashed that check!

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Permalink Reply by Bill R on November 10, 2011 at 16:39

These offers are like fleas... they come bouncing in every time a well is drilled and they all want to put the bite on you!

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Permalink Reply by Hopeful About Natural Gas on November 10, 2011 at 17:14

Ouch!  Very true!!!  I don't think I have ever seen a good offer that just came out of the blue in the mail.  I remember one offer a friend of mine had for $1,000 for all rights to 100 acres (this was in 2005 or so)

 

 

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Permalink Reply by LesterG on November 13, 2011 at 3:44

I had on that offered $11,000 up front and %50 of my mineral rights...... the legalese in the paperwork seemed to indicate I would be signing away ALL of my mineral rights on every other  property I owned...and power of attorney over me...... lol...what if I got sick? could they pull the plug on me?  lol..... I put the paper in my birdcage....

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Permalink Reply by Bill R on November 13, 2011 at 11:38

LesterG  - Sounds like you got one of the same offers I did... first look sounded too good to be true... huge up front initial for a low producing well up in Shelby and after signing you would be signing away 50% of the rights to ALL holdings in Texas under the same terms as your offer!

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Permalink Reply by The_Baron on November 14, 2011 at 4:06

that is a common underhanded tactic.

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Permalink Reply by LN on November 14, 2011 at 9:46

LeserG, you are hilarious!

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Permalink Reply by elizabeth person on November 17, 2011 at 8:26

We look at the offers we receive,laugh at them, tear them up and

throw them in the trash. There is no way we would accept any offer.

Throw them out!!

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Permalink Reply by Dion Warr, CPL on November 16, 2011 at 12:22

LN:

I'll purchase your royalties no, wait, can't do that on GHS...  NO SOLICITING.  (LOL)

 

Seriously though, if you are considering doing such a thing, they are reputable companies out there that will purchase your royalties.  *Virtually* none of them solicit through mass mailings; *virtually* none of them will send out pre-printed checks.  Reputable companies will treat you like a grown-up, and will have no qualms in you having your offer vetted by the legal counsel of your choosing.

Also, most reputable royalty purchasers will not seek to purchase "all of your royalties".  They will agree to purchase a portion of them, and will restrict their purchase to the subject property (no omnibus 'all or whatever that I own in the county / parish / state' descriptions.)

Royalty purchasers in a pooling state (e.g., Texas) will request a POA so that they execute industry agreements (consent to pooling agreements, etc.); they should not require a broad POA.  They should agree to a limited POA as to the ownership interest in which they are buying royalty, limited to those types of transactions.  Think of it this way: your royalty deed isn't very marketable if the lands from which they are carved cannot be pooled.

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Permalink Reply by Scott on November 16, 2011 at 21:00

Keith, do they buy in Oklahoma?

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Permalink Reply by RBW on November 17, 2011 at 6:46

I void it immediately but then keep it to compare the interest/wells they are offering to buy with the actual wells I am getting paid on; just to cross reference and verify I have nothing hanging out there...

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