Wilson,
Your expertise and knowledge(wise words of wisdom)are being missed on this Forum. Thanks for dropping by.
Clint Liles
Wilsontownship said:
Joan, You just answered a post that is nearly a year old.
That's ok though, this is an important topic that warrants frequent review and discussion. You are right, but I wouldn't even permit a 10 day draft. Once they have the draft the time period is essentially irrelevant By that I mean, if they don't honor it on the 11th day or the 50th day, what is a mineral owner going to do? Sue the gas/oil company? If an individual attempts to sue the gas/oil they will lose because their funds can't outlast the gas/oil company budget. This happened to me, but also to 1000s in MI so many people sued - power in numbers.
In the old and honest days, the bank draft was used; it made sense and it worked. those days are gone and as a minimum the gas/oil company can't be trusted to execute that agreement accordingly. So it is important to get a real company check or cashier check. DO NOT PROVIDE A SIGNED LEASED UNTIL THE MONEY CLEARS THE BANK. This can be done with your attorney holding the signed lease until the check has cleared and you know that it (their check) is good and been honored. It is OK to provide a copy of the signed lease, just write COPY across every page so it couldn't possible get filed (filing a copy has happened in the past, so write COPY across it).
I don't post very much any more, but I am very sensitive to this particular topic since I lived it first hand.
My other pet peeve is the lease extension; the gas/oil company option to extend the lease by renewing the signing bonus. These options are ONLY for the benefit of the gas/oil company. DO NOT ACCEPT THEM EITHER. I am talking about the lease offers of 3 + ? or 2 + ? or 5 + ? Don't accept that question mark lease extension option. It seems good, but it isn't good.
wilson