BENT COUNTY, Colorado Mineral acre Computation VS Leasing Company computations?

Oil and Gas Leasing Help
1

Why / How can the numbers be so varied in Net Mineral Acreage computation?

As much as 2/3 the Bent County, Colorado estimates.

Who makes the errors and why?

regards, Brent Hofmeister

2

Ask them for the Ownership Report they compiled.

3

thanks mucho / will do .. brent

Ask them for the Ownership Report they compiled.

4

Brent,

There are many reasons why NMA numbers can vary and most are tied to title and title interpretation. However, sometimes the lease broker’s land men make mistakes. It sounds like you have a good handle on your title. If so, follow the advice of Mr. Rooney and make the lease broker give you answers as to why your title info differs.

That comparison could identify the differences and at a minimum prevent you from signing a lease that ties up all unidentified acreage. I won’t discuss lease terms with land men until we can agree on what is being leased. Time is on your side. Also offer a lease to another company and see what they come up with for title.

5

Gary,

Thank you for your reply. Prior to signing the lease, we did discuss terms and agreed mutually.

The lease broker simply did not follow specifics of the agreement after the fact.

We were surprised when the actual checks came; Net Min. Acres quite different than what we agreed on in the contract.

Also, I think unfortunately that I may have made at least two mistakes.

  1. I should have made a clause to specifically not warrant title (even though I believe we do have title).

  2. Should not have had multiple lease tracts on one lease form.

Is there a manner by which the lease broker is obligated to give us answers to why title info differs?

I do wonder what our recourse is (I do believe we do have title to our mineral holdings).

If we can prove title, how can we convince the land company to honor the acreage listed on the contract?

And, how can we prove title?

regards, Brent Hofmeister

Brent,

There are many reasons why NMA numbers can vary and most are tied to title and title interpretation. However, sometimes the lease broker’s land men make mistakes. It sounds like you have a good handle on your title. If so, follow the advice of Mr. Rooney and make the lease broker give you answers as to why your title info differs.

That comparison could identify the differences and at a minimum prevent you from signing a lease that ties up all unidentified acreage. I won’t discuss lease terms with land men until we can agree on what is being leased. Time is on your side. Also offer a lease to another company and see what they come up with for title.

Gary Hutchinson Minerals Management