r w As always, good advice!I Didn’t know you could do this, and if I were Alicia I certainly wouldn’t waste any time in getting this done!!
Alicia, have you had experience with the BBB? They can do nothing. To even keep a report active of bad behavior of a company you have to keep updating it and when you tire of the hassle the BBB reports that the complaint was satisfactorily resolved and restore the company's rating as if nothing ever happened.
Oil and gas is different than other businesses. If you leased millions of dollars worth of minerals and the company gave you a $10 binder check with bonus to be paid after title search and the company recorded the lease, drilled a well and never paid you, all you could do would be to sue them for your monies owed, there would be no lease cancellation for non-payment. It's not against the law to owe someone money. They could stop paying you at any time after production if you don't have clauses otherwise in your lease and all you could do is sue them. The courts look upon this as a business dispute over money between partners. These lawsuits can easily cost $100,000 or more. Oil companies don't worry a great deal about their public image, they occasionally spread some tens of thousands of dollars around to get some good publicity in an area they are leasing, it's part of their minimal advertising budget. Oil companies don't deal with the general public, usually with individuals.
Not true at all. If they record a lease without the agreed upon consideration having been paid, the lessor can record something to counter that. The lessor can proceed to record an affidavit of non-payment of bonus. It's not against the law to owe someone money, but the lessor could cloud their title and also give public notice that their acreage is available for lease. The cost of the breach of contract suit is also an exaggeration.
Actually, it is against civil law to violate the terms of a contract, and legal remedies are available to the party wronged. One example would be not paying monies owed pursuant to such lease contract.
Dave Quincy said:
Not true at all. If they record a lease without the agreed upon consideration having been paid, the lessor can record something to counter that. The lessor can proceed to record an affidavit of non-payment of bonus. It's not against the law to owe someone money, but the lessor could cloud their title and also give public notice that their acreage is available for lease. The cost of the breach of contract suit is also an exaggeration.
So what would you say our next step is? I knew it was a breach of contract when the 90 period expired in Feb. I live in Virginia, my two sisters are in Pa. and my cousins are scattered all over the country. I represent my sisters. We are able to retain a lawyer if need be but we ith the 20% royalties and no bonus for us and only half the signing bonus for the landowners arent we all getting screwed? Debbie
Some people may have never sued an oil company. Some people may be giving their opinion that is limited to the only area they know.
If you record a statement of non-payment, the other party will likely record a statement that they have a valid and subsisting lease. I doubt you will be leasing that property anytime soon after that, but at least anyone who deals with the deadbeat lessee will see their clouded title.
I have actually been involved with having to sue a lessor for breach of contract and non-payment, it's about 3.5 years in and the lessee has been screaming about the cost. Lawyers are expensive. The paper generated so far is about 1 foot thick. They have three lawyers working on it. The cost of their three lawyers to just read the documents, not including having an original thought at about $750 per hour between the three of them is substantial and it isn't over yet.
You can cloud their title, but fat chance in any other oil company leasing your minerals and giving you a bonus check. In Texas they usually always require a release to be on record from the former company before getting involved in leasing those minerals. Lawsuits are very expensive, depending upon how long it takes and the billing rate of the lawyer.
Dave Quincy said:
Not true at all. If they record a lease without the agreed upon consideration having been paid, the lessor can record something to counter that. The lessor can proceed to record an affidavit of non-payment of bonus. It's not against the law to owe someone money, but the lessor could cloud their title and also give public notice that their acreage is available for lease. The cost of the breach of contract suit is also an exaggeration.
Someone may have been thinking of how much it may cost to settle a case. Not all cases settle. You could have $20k or more in a case before it settles. I will stand by my numbers if you go all the way to a trial and judgement.
Your numbers are definitely possible in some cases.
They usually always. Sounds like you're not sure. Please quote the relevant statute that supports your position regarding a Release being required before another company could lease it. Fat chance, because there isn't one. I'm asking you to do the impossible. You may be 6th generation Texan, but unfortunately that doesn't give you the qualifications to know enough about the oil business to support your posting. Another company could and would lease them and pay them without even the filing of the affidavit stating that consideration wasn't received by Lessor. I have been instructed to do so in the past based on only verbal confirmation. {more than a few times} Not making that up. Back to the original challenge, please post the applicable statute that requires an oil company to have a release prior to leasing a tract of land.
Actually, there are other curative methods a company can implement in a case like that.
6th Generation Texan said:
You can cloud their title, but fat chance in any other oil company leasing your minerals and giving you a bonus check. In Texas they usually always require a release to be on record from the former company before getting involved in leasing those minerals. Lawsuits are very expensive, depending upon how long it takes and the billing rate of the lawyer.
Dave Quincy said:Not true at all. If they record a lease without the agreed upon consideration having been paid, the lessor can record something to counter that. The lessor can proceed to record an affidavit of non-payment of bonus. It's not against the law to owe someone money, but the lessor could cloud their title and also give public notice that their acreage is available for lease. The cost of the breach of contract suit is also an exaggeration.
"In Texas they usually always require a release to be on record from the former company before getting involved in leasing those minerals."
Clarification of posting request. Who are "they" ? The Texas legislature, The Supreme Court of Texas?
If so, please quote statute or reference legal citation.
Dave, "they" are the oil companies that my family dealt with in the past who required a release before leasing the minerals. I am not aware of any statute requiring a release. A fat chance does not mean "no chance." You took my post out of context. This is a free country and I have a right to express my opinion just like you and anyone else. I speak from my experience in the matter.
Don't worry about it. You can't quote or cite something that doesn't exist. In the name of Austin, Milam, Fannin, Travis, Bowie, Crockett, Houston, Lamar, and Pattillo Higgins, aka "Prophet of Spindletop", I also speak from experience. It is good though that you clarified the difference between fat and no, because if by fat, you meant no, I can tell you from first hand experience that you would be dead wrong.
6th Generation Texan said:
Dave, "they" are the oil companies that my family dealt with in the past who required a release before leasing the minerals. I am not aware of any statute requiring a release. A fat chance does not mean "no chance." You took my post out of context. This is a free country and I have a right to express my opinion just like you and anyone else. I speak from my experience in the matter.
UPDATE! It is finally done! After almost 8 months, our bonus checks have been released!
Congratulations Alicia. My family and I arestill awaiting our royalties and the landowners are still waiting for their signing bonus. . It has been over 8 months. Still no communication from Rice. The only way I get info is by contacting the landowners. I am a teacher and off for the summer. I am tempted to go to their office to find out what is going on but not sure it would be worth it. I might get the same run around. Debbie
I am so sorry to hear that Debbie. I have a phone number for you that takes you directly to representatives for lease holders. By pass the main office and that RUDE receptionist!!! I will PM it to you!
Great advice!