landowner

!!! Strip Mining for Coal ???

I was looking over the lease that Benedum has offered and it sure reads like they could use this lease to strip mine for coal in our area. It says oil and gas and "all other minerals". and they pay only 10% on all other minerals. and that they have the right to combine the leases. I only bring this up since we know there were coal mines in timpson years ago. Does anyone elses lease read like this.

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Oil & Gas ProPermalink Reply by Randy on July 30, 2008 at 3:02
Ask for an addendum that covers only oil, gas, and other related liquid hydrocarbons

landownerPermalink Reply by Gone Fishin on July 30, 2008 at 4:26
Randy, are you familiar with this Benedum company, who they are afilliated with.

Oil & Gas ProPermalink Reply by Randy on July 30, 2008 at 5:04
No I am not.

landownerPermalink Reply by Bacon on July 30, 2008 at 4:27
There's a coal strip mining operation down at Armistead and has been 15 years. Are you having an attorney look it over?

landownerPermalink Reply by Gone Fishin on July 30, 2008 at 7:23
what did they pay you for the coal and did you have to move from your house or do you live on the property.
Permalink Reply by Mlbjr on September 9, 2008 at 7:16
I know its been some time since you discussed the Benedum lease, what was the outcome? What did you eventually end up doing with this company? I am reviewing their lease at this point.

landownerPermalink Reply by LJO on September 15, 2008 at 14:57
No need to review, they just sent out letters to all that they recently (6 weeks ago) did bank drafts for that they will not be executing the leases. Also had bank call that the draft was returned unpaid! Stay as far away from this company as you can!!!
Permalink Reply by Augetter on September 9, 2008 at 9:03
The idea behind this is not to deprive you of the benefits from some other mineral exploitation but to protect themselves from lawsuits that might arise of you signed a lease for coal over their oil lease, The coal company would have a legal standing to interfere with the production of oil and gas to get to the coal. It would come down to a court battle which the coal company would likely lose because the O&G company had prior rights. None the less why give someone the right to effectively commit legal blackmail.
Permalink Reply by Mlbjr on September 10, 2008 at 5:05
I saw this same lease and questioned the 10% and 'other minerals" provision and they readily agreed to remove it from the lease. What was your final decision with this company? Are you still in negotiations?

landownerPermalink Reply by Mint Julep on September 10, 2008 at 5:28
It is my understanding that coal and lignite normally go with the surface estate.

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