Hi Robert,
Unfortunately, everything that has been said is posted above. We are in the same situation as you. They offered a lease and we said no thanks. Their terms were not even interesting. That is where it stands now. We have had some discussions with a person in the oil business whom we consider to be knowledgeable enough to trust, and he agreed with us that the offered lease was a farce. I know nothing about the oil business, but intuition asks the question if they could drain you without a lease in place, why would they even be willing to offer one! I will say that they approached us twice. The first time was with a “this is our terms, they are not negotiable” attitude. The second time, they doubled the offer on the upfront money. I expect we will eventually have to hire an attorney to represent us.
Sorry I could be of no more help.
Brian
Robert E. Buie said:
Brian,
I, too, am a Mississippi mineral holder on a couple hundred acres. I was interested in the conversation between you and Mr. Cotten because I have the same concerns in a lease being negotiated in Wilkerson County as we speak.
The language of the lease clearly takes away our right to profit from horizontal drilling if they so choose.
They are unwilling to change it which leaves us in a Mexican standoff.
Mr Cotten surely appears to have a broad knowledge of the industry, huh?
Any activity, especially that in the Tuscaloosa Shale that you run across, I
would appreciate you posting it for my viewing. Information has been so
hard to come by especially when you are a layman in this business.
Thanks!