E&P Lease not recorded at Courthouse, etc

Oil and Gas Leasing Help
1

Hi, What does one do if the Executive Rights mineral owner is not willing to provide copies of the E&P lease to the majority non-participating mineral owners which is stipulated in the terms of the land sale agreement?
The story is that the surface rights terns are not the business of the non-participating mineral owners? We all want our cake and eat it, too, but this does not strike me as fulfilling one’s fiduciary responsibilities. Helpful advice would be appreciated - thanks!

Ralpr

2

Dear Ralpr,

Does not strike me as copacetic as well. There is a reason that he will not divulge terms. The logical reason is that the ER owner struck a deal which had a benefit to him that did not extend to the non-executives.

At some point, in all likelihood, if the land is to be pooled, you will need to ratify the lease for pooling. Certainly at that point, you could clearly see what you are being asked to ratify.

Are you a non-executive, but are able to receive bonus? Or are you a NPRI, and only share in the royalty?

There is more than one copy of the lease. The oil company has one. If you have a land sale contract, contact the oil company with a certified copy of the contract that stipulates your entitlement to same. That is another potential way to skin the cat.

The brokerage who bought the lease has a copy, too. Check to see where the lease was returned to or filed by or something to lead you to the landman. He might show you the file, since you are part of title. I would.

Your other recourse is to file suit.

3

Hi Mr. Cotten,

Thanks for your reply very much. We're NPRI and only to share in royalties. I've checked with the County Clerk, and waiting for a reply on whether there's a recorded document, but as of late March, there was nada. I think the acreage is in question, with ROW acreage not being considered part of the equation - LOL! Anyways, as a Petroleum Hydrogeologist working on petroleum issues downstream (reimbursement of petroleum contamination from LUSTs) - I deal with ROW issues on a daily basis. I kind of like my odds on this issue. Not to mention my sister-in-law is a County Attorney, cousin's ex-wife is a Law Professor who has written books on white collar crime & her kids stand to benefit, other cousin's wife is an Attorney (former Assistant Prosecuter for a large city), brother-in-law is a Federal Judge, etc... I'm the runt of the family at 6'3" and 240 lbs.

Regards,

Ralph

Buddy Cotten said:

Dear Ralpr,

Does not strike me as copacetic as well. There is a reason that he will not divulge terms. The logical reason is that the ER owner struck a deal which had a benefit to him that did not extend to the non-executives.

At some point, in all likelihood, if the land is to be pooled, you will need to ratify the lease for pooling. Certainly at that point, you could clearly see what you are being asked to ratify.

Are you a non-executive, but are able to receive bonus? Or are you a NPRI, and only share in the royalty?

There is more than one copy of the lease. The oil company has one. If you have a land sale contract, contact the oil company with a certified copy of the contract that stipulates your entitlement to same. That is another potential way to skin the cat.

The brokerage who bought the lease has a copy, too. Check to see where the lease was returned to or filed by or something to lead you to the landman. He might show you the file, since you are part of title. I would.

Your other recourse is to file suit.

Best,

Buddy Cotten

4

We have the rights to ingress/regress. Could this involve some payments to the NPRI owners?

Ralpr said:

Hi Mr. Cotten,

Thanks for your reply very much. We’re NPRI and only to share in royalties. I’ve checked with the County Clerk, and waiting for a reply on whether there’s a recorded document, but as of late March, there was nada. I think the acreage is in question, with ROW acreage not being considered part of the equation - LOL! Anyways, as a Petroleum Hydrogeologist working on petroleum issues downstream (reimbursement of petroleum contamination from LUSTs) - I deal with ROW issues on a daily basis. I kind of like my odds on this issue. Not to mention my sister-in-law is a County Attorney, cousin’s ex-wife is a Law Professor who has written books on white collar crime & her kids stand to benefit, other cousin’s wife is an Attorney (former Assistant Prosecuter for a large city), brother-in-law is a Federal Judge, etc… I’m the runt of the family at 6’3" and 240 lbs.

Regards,

Ralph

Buddy Cotten said:

Dear Ralpr,

Does not strike me as copacetic as well. There is a reason that he will not divulge terms. The logical reason is that the ER owner struck a deal which had a benefit to him that did not extend to the non-executives.

At some point, in all likelihood, if the land is to be pooled, you will need to ratify the lease for pooling. Certainly at that point, you could clearly see what you are being asked to ratify.

Are you a non-executive, but are able to receive bonus? Or are you a NPRI, and only share in the royalty?

There is more than one copy of the lease. The oil company has one. If you have a land sale contract, contact the oil company with a certified copy of the contract that stipulates your entitlement to same. That is another potential way to skin the cat.

The brokerage who bought the lease has a copy, too. Check to see where the lease was returned to or filed by or something to lead you to the landman. He might show you the file, since you are part of title. I would.

Your other recourse is to file suit.

Best,

Buddy Cotten

5

We have the rights to ingress/regress. Could this potentially involve some payments to the NPRI owners? Is the ROW handled differently?

Ralpr said:

Hi Mr. Cotten,

Thanks for your reply very much. We’re NPRI and only to share in royalties. I’ve checked with the County Clerk, and waiting for a reply on whether there’s a recorded document, but as of late March, there was nada. I think the acreage is in question, with ROW acreage not being considered part of the equation - LOL! Anyways, as a Petroleum Hydrogeologist working on petroleum issues downstream (reimbursement of petroleum contamination from LUSTs) - I deal with ROW issues on a daily basis. I kind of like my odds on this issue. Not to mention my sister-in-law is a County Attorney, cousin’s ex-wife is a Law Professor who has written books on white collar crime & her kids stand to benefit, other cousin’s wife is an Attorney (former Assistant Prosecuter for a large city), brother-in-law is a Federal Judge, etc… I’m the runt of the family at 6’3" and 240 lbs.

Regards,

Ralph

Buddy Cotten said:

Dear Ralpr,

Does not strike me as copacetic as well. There is a reason that he will not divulge terms. The logical reason is that the ER owner struck a deal which had a benefit to him that did not extend to the non-executives.

At some point, in all likelihood, if the land is to be pooled, you will need to ratify the lease for pooling. Certainly at that point, you could clearly see what you are being asked to ratify.

Are you a non-executive, but are able to receive bonus? Or are you a NPRI, and only share in the royalty?

There is more than one copy of the lease. The oil company has one. If you have a land sale contract, contact the oil company with a certified copy of the contract that stipulates your entitlement to same. That is another potential way to skin the cat.

The brokerage who bought the lease has a copy, too. Check to see where the lease was returned to or filed by or something to lead you to the landman. He might show you the file, since you are part of title. I would.

Your other recourse is to file suit.

Best,

Buddy Cotten

6

If you have the exclusive rights of ingress and egress, you should be entitled to compensation, if they choose to enter the property, I would think. Sounds like you have lawyers in the family, so get them to contact an O&G lawyer with some professional courtesy.

7

Hi Mr. Cotten, Thanks very much for the considerations to mull on.

Regards, Ralpr

Buddy Cotten said:

If you have the exclusive rights of ingress and egress, you should be entitled to compensation, if they choose to enter the property, I would think. Sounds like you have lawyers in the family, so get them to contact an O&G lawyer with some professional courtesy.

Best,

Buddy Cotten