Advice Please *fighting for my lease*

General Mineral Rights Discussion
1

I will try to keep it short. I have a 3-year lease with a 2-year extension. Extension date came up and I received no check. As stated in lease (payment will be on or before date of extension). Received a check 1 1/2 months past due date, but check was dated before extension date. They said they sent it to me and it was returned, but could provide no proof. They (the oil company) say they are in the right and will not release my lease.

  1. Check was not received (on or before date of extension).

  2. They sent 1099 for 2017 but I did not receive check until 2018.

  3. They misspelled my name on the check and the 1099.

  4. They want to compromise and send an additional check for a few thousand more. So I would have to cash the original check they sent, and they would send me another check for the (compromise bonus).

  5. I have not cashed the check.

The lease is worth at least twice what they are offering.

My lawyer is working on this, but am curious if anyone else has experienced this and what was the outcome. Any and all advice appreciated.

2

I wish you luck. I would not cash the check. I would send it back and tell them to send total payment for the bonus in one check. If you cash the check, then you have accepted payment and will probably never get another check. Sounds like they may have forgot the bonus extension, but I don’t know how you are going to prove it. What is your attorney doing? Sitting on it or is he really working?

Next time you lease, ask for payment of any extension to be mailed Certified 30 days ahead. I don’t like extension and try not to lease that way.

3

I had a similar issue with a large oil company which I filed a quiet title and trespassing suit against when a well was drilled. If they have proof they sent payment in 2017 before time expired their lease is valid even if you didn’t receive prior to that date. Your (payment will be on or before date of extension) refers to mailing date, not receiving date. Mine stated (by certified mail) and as it turns out it can be sent by any mailing not just USPS certified, FedEx is sufficient. I had filed an affidavit on the lease being expired the day after the expiration date. The misspelling I would be curious if that would be a sticking point and they need proof it was originally “mailed by” the date of expiration.

4

The extension ended in December 2017. The check was mailed February 2018 postmarked and certified.

Thank You.

5

Thank you Mineral Joe. The extension ended in December 2017. The check was mailed February 2018 postmarked and certified.

6

You said they told you they originally mailed in 2017, if they have proof then it may come down to the spelling of the name.

7

No proof, asked them several times to prove it they can’t or won’t.

8

I’m dealing right now where my relative received a 1099 even though she paid the money back after they realized it was HBP. Sounds like it will be difficult to get your lessee to do a correction 1099.