The company would not like that at all. Going through the bank is the safest way and should be acceptable to all the parties. I just hope Skipper can get the situation straightened out.
Good idea, but I am surprised to hear that the companies are refusing to pay the charges. That has been an industry standard since before most of today's company executives were out of diapers.
I hope your Attorney doesn't charge you for doing so!
There has been a very "stingy" trend running through the industry these past few years. A few years ago Chesapeake started a policy of not paying for the travelling Landmen's hotel or motel expenses and many companies have followed suit.
I think that's totally cheesy. As if the expenses of having Landmen in the field are so major that they are detrimental to the companies' bottom lines...
Next time, negotiate for a higher bonus to cover the charges. Tee Hee.
Thanks to all for chiming in with history and good ideas!! I have been on the phone today with Canadian County Clerk's Office and the lease document has been filed. So, Rojo Energy Holdings, LLC has seen fit to "take possession" of the mineral rights, but not pay for them at this point in time. The Clerk's office then sent me to the Oklahoma Corporation Committee and while sympathetic to the dilemma, was not able to offer much in the way of a practical solution. However, they did in turn send me to the National Association of Royalty Owners (NAMO) in Tulsa. They are convinced that we have thus far only missed a billing cycle and that before 60 days is up we will receive our monies. We're not clear if that is 60 business days or 60 calendar days. In the meantime I have typed up the text dialogue with the Rojo Energy Holdings, LLC representative that shows clear deceit about us receiving the check, said dialogue beginning on Thursday, 21 July. At the same time, my brother has forwarded a copy of our lease to an O & G Lease attorney as well as the information I provided on the location of the information on the now registered lease as well as the typed dialogue with the rep. I have been very angry at Rojo Energy Holdings, LLC. Put that to bed for now in favor of getting even. Hence forth, The Hill Top Trust will revert to payment before lease. To much angst over what has turned out to be a crooked element in our midst. A truly sad turn of events. The rancher likes the surface lease. We can be content with less.
I am not certain about Oklahoma, but we often have landowners who have been cold drafted. We simply have them file an affidavit of non-payment of record. The specific language should dictate the facts and that the lessee failed to comply with the terms of the draft and no cash changed hands. Because no consideration was given (a requirement to satisfy the validity of the contract), the lease itself is void. It shouldn't cost much for your attorney friend to draft that up. Good luck!
Great suggestion, Jimmy! I have now had two people recommend an Affidavit and have in turn passed both on to the lawyer, who is just getting up to speed from being on vacation.
I would like to update the status of our relationship with Rojo Energy Holdings, LLC. After 60 days of non-payment of the bonus for our mineral lease, we contacted Bass Law firm (offices in El Reno and OKC). In fairly short order, they sent a letter to Rojo Energy Holdings, LLC advising them to either pay the bonus in five (5) days or lose the lease. Amazingly enough, Rojo Energy Holding, LLC was able to find the money and have an employee drive the check to the Bass Law office. We then received the check from Bass Law and made our deposit. Of course the bank held the check for their legal ten (10) day holding period.
I would encourage anyone/everyone who is having a problem with their signed lease to at least contact a law firm, although I highly recommend Bass Law. By the time you have received the great information on this blog, it's to late. Get help!!
MY husband has received interest for his mineral rights. After reading some of these stories...I would think that a contract to sell it would be valid "only if payment is received within a week of signing" , contract is void after that...we are not by the way interested in selling at this time.
If you wouldn't hand over a signed title to your car or pickup without payment in your hand, why in God's name would you hand over a signed lease for mineral worth 1000 times the value of your car to a faceless stranger unless you had the money in the bank?
I've done hundreds of mineral transactions in my career for both clients and myself and never given over a recordable document with out it being paid for first. ALL LEGITIMATE LESSEES OR BUYERS will pay cash on the barrel head for signed documents. If they won't, don't do business with them. Just because you were given mineral rights doesn't mean they are of less value to the industry. Treat them as such.
Once you give up that signed document you loose 100% control. Do you think those same landmen can walk into a grocery store and walk out with a T-bone steak promising tell the grocer they will pay for it if it tastes good?
Gary L Hutchinson
Minerals Managment
Beautifully stated. These are words to live by mineral owners.
is this a Bass Law advertisement?
Just read this string of E-mails. Good advice Gary! I, too was never paid my bonus a few years back (as promised in the order of payment) and finally had the lease surrendered and returned to me 4 months later after numerous emails and wasting my time. I heard plenty of excuses and finally the landman said 'I have no idea why you haven't been paid'
I am currently negotiating a different lease and will not sign without funds in hand as Gary suggests.
Regarding a top lease, should a mineral owner simply wait till the current lease ends before signing a new one. I'm promised 20% bonus now and 80% in August if I sign now (plus the 'order of payment' time frame of another month or more. Seems shady...)