We, several of us, have mineral interests in a particular Section of land in Colorado, but do not have executive rights to negotiate leases, received bonus payments, etc. A well has been drilled and now we are being asked to sign off on a document that suggests we approve or "Ratify" the lease agreed to by the holder of the executive rights.
Thus far we have not been offered the chance to read the lease before being asked to sign off on it. It this a common business practice? Sounds a tad odd to me.
Bob
We do not have the executive rights. I don't think that we are at the point where we have a non participating royalty interest as this well is new and is still on the confidential list. It comes off next month. It is a single well on 640 acre spacing. The push to sign a ratification document comes from a Drilling Title Opinion and passed on to us. Additionally, we have to complete a Determination of Heirship which we are in the process of doing. We are not pooled yet.
Bob
r w kennedy said:
Mr. Tofson, it might clarify if you said whether you owned mineral acres without executive right or possibly if you had a non-participating royalty interest. If you own the mineral acres without the executive right I would say you need sign nothing, either the executive had the right to enter into and bind you to a lease, or he did not. I think that sadly, it is common business practice to ask people to ratify documents they have not seen. I would be very sad to hear that anyone did ratify documents without having first read them. If you do actually have an NPRI, I would prefer to leave that up to the professionals to comment on.