without seeing what the actual “royalty lease” includes its hard to tell. I would assume its a scam and the Leasing Partners mentioned a lease for 5 -10 years of royalties and included language “or as long as there is a well producing” blah blah
It kind of depends on whether Ms. Edwards actually signed a lease. if she did, the filing of a memorandum is not a scam. It just puts the world on notice that she signed a lease to Leasing Partners.
So a land service company contacted us saying that the tiltle to the property was not clear and they had a class action lawsuit was filed for about 17 people that had similar title issues and they thought we were part of it. Then a while later they said that this was a different company with a similar royalty scam lease? Who would lease their Royalties? Its not lease their property it is leasing their royalties? Leasing what you are getting paid? Not your minerals? What is wrong with picture? Am I missing something? Then their address goes to a strip mall, who knows who they are? The picture is what she signed in the prior post?
One must be very careful about any offer pertaining to royalty leases. I have seen several in the last few years that are actually a scam when the fine print says they are paying about $200 and now control all mineral acres one owns everywhere, they make themselves and their attorneys the mediator, etc. (And they never mention that quite a few horizontals are about to be drilled.) Without seeing the original document, this memorandum by itself is only a memorandum for filing.
You cannot tell without seeing the document, but the “royalty lease” language is indicative of the royalty lease scam that was going on around this time. NARO Texas helped get a law passed making it much more difficult to continue this scam, which is where they present you with something that looks like a regular oil and gas lease but you are actually selling them 75%+ of your royalty stream for as long as the underlying lease is in effect.
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