Replies to This Discussion

Permalink Reply by DJG on November 12, 2010 at 10:53

Which company are you dealing with for the lease in Panola?

You can help diffuse their argument about not offering25% royalty if you can find other recent contracts filed where that rate has been agreed to. Suggest that you search the County Clerk's office records in Panola to see what is going on recently.

We had similar resistance from the landman we were dealing with for minerals in Shelby County as they were claiming that they were only authorized to offer 20% (and then later 22.5%). By finding other recent contracts filed at the Shelby County Clerks office where 25% was approved and recorded by the same O&G we were dealing with it made it shut down their argument for anything less than 25%.

Permalink Reply by Phillip Briggs on November 13, 2010 at 5:51

With Memo OGL's, it's getting harder to find out what the percentage is...

Permalink Reply by Joseph Nunnally on December 8, 2010 at 9:57

Just stick to your guns - you'll get the 25%. Operators have wised up on their documentation and are no longer filing documents at the courthouse that disclose the royalty percentage. They are filing memorandum documents that only disclose that a lease exists, ie: no details. Again, stick to the 25% - you'll get it.