Is it reasonable to think a petroleum company would be honest in their assessment of what’s rightfully yours when approached about previously unknown mineral rights? Is it a Landman who helps you investigate and confirm what belongs to your family? Texas has such a confusing vast database it’s hard to make sense of anything. Any help is greatly appreciated.
A Minerals Company will be honest with you, but you have to bear in mind that they are in business to make a profit. And yes, a Landman can research the public records and determine what you own. They may even be able to determine if you have royalties waiting for you to claim.
Charles that’s kinda painting it with a broad brush to say a mineral company will be honest with you. I read a lawsuit the other day where a big mineral buying company stated they’d buy 20 of the owners 40 nma in the purchase contract, but on a later page in big bold letters it stated that you’re selling all of your mineral interest in that transaction. Subsequently the deed conveyed 40 nma, yet the owner only got paid for 20 nma. That lawsuit has been going on for years now. Read that purchase sales agreement closely.
I agree with both the above. Most companies have reasonable people working for them who I tend to believe are doing their best. But 1) they’re human and make errors, 2) they’re running businesses not charities.
I’ve seen a lot of quick and dirty offers that were only 50% correct. Most times those are corrected before closing but end up adjusting the price significantly and are a huge headache for sellers.
I’ve also seen a similar lawsuit where the mineral owner asked if there were any producing wells and the buyer said no, so she sold for ~$200k, only to find out after the sale there were wells that recently came online to the tune of $1m of projected royalties. Their defense is that production and state records are public domain and you’re responsible for knowing what you own, not them.
No doubt learning what you need to know is an effort that has to be pursued . It sure is nice though when you’re a newbie and someone does the right thing and doesn’t screw you and gives you some hints. Much like what so many do here on this forum.
When you know something and you purposely don’t share that information or worse like in the case you sited straight out lie when asked a question and it’s for profit or charity. That makes you a bottom feeder. So low you are not worthy enough to be listened to about anything. Your name and other perinate facts should be on billboards in your neighborhood. There is no defense. The courts should in no way allow a defense. That’s why courts are corrupt when instead they should be an example. That’s what their Canons are all about.
agree totally when selling half of our interest several years ago in purchase agreement it was stated in decimal form the full amount sorry caught them in the act, they will try anything if you let them mistake I dont think so.
Good to hear this conversation. This year I was forced to go to court. A person who is a joint owner of property I also am a joint owner of, a long time “Texas lawyer”, has waged a 50 year slight of hand attempt to take property from my self and my family members. So far, the land has not produced much, which may be a god sent.
Being a woman and not a Texas was actually used against me in the court argument by the opposing party. The opposing party asked for %10 more money from a small property sale then was actually paid by the seller. When this was pointed out, an excuse was given that lawyers arent mathematicians. T
Diesel & Tracy,
I agree with both of you, but was trying to answer the question in a way that the Monitors would allow.
You are right, there are far too many sleazy companies out there trying to take advantage of people through using “Mother Hubbard” language and the like. Have either of you run across the Royalty Lease scam?
I have helped several people by showing them that they were owed substantially larger amounts of royalties (being held in suspense) than the offers they were receiving.
And if a seller asks if there is any drilling or production activities effecting the land, the company should say that they don’t know or that they haven’t researched that (if that is the truth), otherwise they should tell the seller that they need to have that researched on their own.
But a seller should be able to trust the company to be honest about telling them what they own. And the seller should be aware that the company is a business, not a charity.
This topic was automatically closed after 90 days. New replies are no longer allowed.