Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on September 27, 2010 at 8:02

It doesn't. However having an attorney handle it, especially one familiar to the company for knowing what they are doing and following through, will in most instances speed up the process.

Permalink Reply by Henry on September 27, 2010 at 11:45

Yea, but is that really worth $300? It ought not to be that expensive., to get a company to do something so simple.

Permalink Reply by Skip Peel - Mineral Consultant on September 27, 2010 at 12:11

The estimation of worth is an individual decision. Are your minerals worth enough to spend $300 to make sure they are not overlooked when leasing is occurring in the vicinity? I understand you sentiment Henry, I'm just making the point that when dealing with an asset as valuable as what many mineral owners have at stake, professional assistance is usually found to be a bargain after the fact. Do you think it a possibility that a O&G company might respond to a demand for release from a well known O&G attorney before one from a mineral owner? The old saying, " penny wise and pound foolish" has applied in far too many instances in the history of the Haynesville Shale Play.

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Permalink Reply by adubu on September 27, 2010 at 12:22

Skip---I agree-- attorney time is money and you sure would not expect a letter to be sent FREE regardless of the reason you consulted your attorney. The attorney probably got a faster reply that if you had done it yourself free. So $300 cost is reasonable for attorneys time. If it give you a better chance for landsman to find your minerals to lease then money well spend IMO. And I'm not a attorney

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Permalink Reply by The_Baron on September 29, 2010 at 4:10

I would try a simple request by certified mail first.... only costs about five bucks.

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Permalink Reply by John Brewster on September 29, 2010 at 4:24

I am an oil and gas attorney and mineral owner. The Baron is correct - send a certified letter requesting that a release of the lease be filed of record, and that you receive a file-stamped copy. Give the lessee a reasonable time limit in your demand letter (no more than 30 days and no less than 10 days might be "reasonable"). There were some confusing comments early on this thread. Unless the lease requires a release be filed, many lessees do not file releases. They should do so, however, on request. Read your lease carefully to see if it has a provision promising a release and determine whether there is a time specified. Someone mentioned 30 months. That is a long time, but entirely possible. I've seen provisions that a release will be filed within 1 or 2 years. That's a long time but it is a provision that many mineral owners don't understand, or don't pay attention to, as they don't think any money is involved.

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Permalink Reply by Henry on September 29, 2010 at 13:13

Skip, Of course you do what you gotta do to protect your minerals. But here's the glitch...

If my attorney writes a "demand letter," then he feels he must go to court to back it up, if the other side doesn't comply. Just protecting his reputation. So I don't want to bring my attorney into a simple issue, because this is something I'm not willing to go to court to fight over.

I'm with Baron on this one. Write a letter, send it certified mail, and sit back for a good while. Follow it up with phone calls and more letters. I'd go a long time (forever?), before I engage my lawyer to help in something so simple.

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Permalink Reply by John Brewster on September 29, 2010 at 14:02

An appropriate demand letter will suffice. You shouldn't expect to need to enforce it. Legitimate operators customarily file releases when asked to do so. Moreover, a lawyer who compels his client to litigate to "back something up" is irresponsible and undesirable. Such action would not be cost justified unless the leasehold is substantial and extremely valuable, or unless you had another party who could not lease until a release was obtained. Only those circumstances would justify anything more than a letter and followup encouragement.
John

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Permalink Reply by Skip Peel - Mineral Consultant on September 29, 2010 at 14:09

Henry, it depends on the value of your mineral estate. Doing it on the cheap with considerable due diligence may turn out to be sufficient. I don't fault anyone for taking that path. However, it is my business to advise paying clients with valuable assets how best to protect those assets. Much of the "do-it-yourself" advise passed out here on GHS tends to give readers the impression that that advise is a definitive answer to their question(s). IMO, that advise is factually accurate about 50% of the time. Too many tune in for a short period to ask a specific question and then think they have the answer without having invested the time to judge the experience of the respondents. I appreciate the desire to help and to share knowledge gained on the site but too many laymen provide less than accurate responses. I have had communications with more than a few GHS members who found out that the advise they acted upon was flawed. Unfortunately there is no definitive means to determine whose advise is "correct", other than the ability and experience of the member seeking the information to form an opinion by actively participating in our discussions.

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Permalink Reply by adubu on September 29, 2010 at 14:22

skip and henry--- IMO you are making a mountain out of a mole hill with something so simply as obtaining a written release on a lease that has expired. If lease has expired a honest operator has no reason not to sent you a sign release to file for record for they have no reason not to. The only reason to get it and file it is so it will be easier for landsman to find your minerals available to lease if in a area of interest. A good landman will find you anyway with or without release filed for he will pull your lease at court house and read it. If you want to get attorney to send letter if they do not response to your letter asking for sign release after 30 or so days and no reply to phone call then if it makes you sleep better then pay the lawyer for his time to send a letter for you. I agree with what the attorney John Brewster above said.

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Permalink Reply by Skip Peel - Mineral Consultant on September 29, 2010 at 14:47

adubu, you and all the other members may make up your own minds as to the relevance of the topic and comments. My points are these: Conception of simplicity regarding the act of filing a release is up to the lessor. The potential value of the asset and the pace of leasing in an area may be a consideration. Any lessor who wishes to rely on the good graces of the lessee to file and do so in a timely fashion may do so. Relying on a "good landman" is like playing roulet. If you choose to do so, so be it.

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Permalink Reply by Henry on September 29, 2010 at 23:17

I think (?) I'm in agreement with everyone here. My only original point was that it is sad, if the system is such that I need to hire an attorney to write a letter to "encourage" a lessee to write a release letter in a timely manner.

I agree with adubu -- mountain out of a mole hill.

Ii agree with skip -- if you have a significant amount of acreage, don't try to do it yourself on anything truly important and/or complicated.

I'm out of this discussion.

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