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Permalink Reply by buckmaster on May 25, 2011 at 10:17

W V landowner check the name and number on the next page,maybe you can find out something from her

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Permalink Reply by Ol' Vet on May 26, 2011 at 16:10

From a non-oil-and-gas lawyer who knows to engage an expert when entering into an oil and gas lease: A well-drafted lease will specify the time period for payment of royalties (commonly by the end of the second month after production and sale, although I try to negotiate the period to be by the end of the first month after), and provide for strong and enforceable remedies for the lessee's failure to make timely payment.  An assignment of the lessee's rights and responsibilities under the lease should be prohibited without the consent of the lessor; if such a provision exists, there is no question about the named lessee being the party responsible for making payments, even if the lessee has entered into an operating agreement with another party. It is so important to get the services of a good O&G lawyer up front before entering into a lease.

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Permalink Reply by Henry on May 26, 2011 at 23:17

Ol' Vet,

You are so right.  But, what's a person who owns 2 acres to do?  Even if his lease calls for payments within a certain time, and spells out penalties, he's still hosed.  It's simply not cost-effective to hire an attorney at $250/hour and go to court to force on-time payments.  It seems to me that the system fails the little guy in these situations.

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Permalink Reply by Crunchy on May 28, 2011 at 1:43

I have dealt with both companies. They have paid "on time"---but I don't think that it is always the case. I know that I have been waiting on CHK seven months now.

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