Can anyone share with me their first hand knowledge about possible mineral rights not being transferred from prior Oil Company to the new one who has purchased it. If so, did you have an attorney or did you get resolution from the new oil company? Has anyone had Petro-Canada? Who is responsible for errors? The prior oil well company or the new one who has purchased?
Deanne, it's my understanding that buying a well is like buying a business, when you buy it you are buying it's assets and liabilities. One forum member had the problem that the well was being repeatedly sold and the present owners were stalling so they could sell it and the forum member would have to start again trying to collect from the new owners.
Hi R W Kennedy,
All of this just makes me want to puke. How is it that these oil companies can get away with such crap. I think I should go to law school ! I tried to contact Petro-Canada the prior owners today, and how typical, the gal who answered didn't know who I needed to speak with ..............she said she was a new employee. All I can say is EVERY DROP OF OIL, GAS AND SUCH SOLD IS BEING PAID TO SOMEONE. I know now more than ever I need to do what ever it takes to protect my rights and the rights of my heirs. It truly makes me feel bad for all the people who don't know where to turn or that they cannot trust that they are paid all revenue due to them. Or that they have every right to question the oil companies and dig deep to protect their assets. Thank you for your insight. I appreciate all input.
Deanne, this is one of the reasons why it is so important to have a really good, solid lease from the very beginning. We have had leases where we, as Lessors, required any and all sales by Lessees to be approved by us. That is when I learned how many investors are involved. One LLC selling 1/3 of its 5% royalty to another LLC and on and on and on! If you have a good, solid lease, you may not have control over misbehavior, but you do have legal recourse.
Mr. Hicks, I appreciate your point of making sure you have a good lease witch protects the mineral owner. The problem is that with small interests, it may not be economically feasable. Even if a mineral owner with a small interest were to allocate all of their bonus money and dip into their pocket besides to make an addition to lease for the mineral owners protection, if the mineral owner didn't have enough money to pursue a lawsuit that will be very expensive, the contract that cost a good deal of money is still unenforceable. I don't think anyone is going to mortgage their home because an oil company owes them $10,000. The sad thing is the oil company knows this also.
Thank you............Ron Hicks!! If we as mineral owners can help educate others it will help keep the oil companies in check. I think many of us need to "Pool" together and unite for justice.
Ron Hicks said:
Deanne, this is one of the reasons why it is so important to have a really good, solid lease from the very beginning. We have had leases where we, as Lessors, required any and all sales by Lessees to be approved by us. That is when I learned how many investors are involved. One LLC selling 1/3 of its 5% royalty to another LLC and on and on and on! If you have a good, solid lease, you may not have control over misbehavior, but you do have legal recourse.
Have an attorney look at the lease to see if you can start sending out notices of termination. That usually gets their attention.
Hi Wade Caldwell, Do you know people who have been through this ...........and how long did it take the Oil Company to respond? Thank you for responding :)
Wade Caldwell said:
Have an attorney look at the lease to see if you can start sending out notices of termination. That usually gets their attention.
Hi r w kennedy,
I feel no matter the size of a persons mineral interest. If money is due them from the Oil Company isn't that theft? Sad when a persons interests and their legal rights to such interests become simply lost due to the lack of funds to aquirre legal representation to fight for what IS THEIRS TO BEGIN WITH,,,,,,,
r w kennedy said:
Mr. Hicks, I appreciate your point of making sure you have a good lease witch protects the mineral owner. The problem is that with small interests, it may not be economically feasable. Even if a mineral owner with a small interest were to allocate all of their bonus money and dip into their pocket besides to make an addition to lease for the mineral owners protection, if the mineral owner didn't have enough money to pursue a lawsuit that will be very expensive, the contract that cost a good deal of money is still unenforceable. I don't think anyone is going to mortgage their home because an oil company owes them $10,000. The sad thing is the oil company knows this also.
Thank u for this posting. I am doing a great deal of investigation on this very same thing
r w kennedy said:
Deanne, it's my understanding that buying a well is like buying a business, when you buy it you are buying it's assets and liabilities. One forum member had the problem that the well was being repeatedly sold and the present owners were stalling so they could sell it and the forum member would have to start again trying to collect from the new owners.
Yes. It all starts with what the lease says. Termination is usually not easy, and there are other ways to skin the cat beside termination, i.e. requesting an audit of records. Response time varies, but usually much faster if it comes on an attorney's letterhead that knows what he is doing.
Deanne M Naydo said:
Hi Wade Caldwell, Do you know people who have been through this ...........and how long did it take the Oil Company to respond? Thank you for responding :)
Wade Caldwell said:Have an attorney look at the lease to see if you can start sending out notices of termination. That usually gets their attention.
If proper investigation is done..............is it possible and or likely that the Oil Company has to pay complete restitution for all back monies owed??
Wade Caldwell said:
Yes. It all starts with what the lease says. Termination is usually not easy, and there are other ways to skin the cat beside termination, i.e. requesting an audit of records. Response time varies, but usually much faster if it comes on an attorney's letterhead that knows what he is doing.
Deanne M Naydo said:Hi Wade Caldwell, Do you know people who have been through this ...........and how long did it take the Oil Company to respond? Thank you for responding :)
Wade Caldwell said:Have an attorney look at the lease to see if you can start sending out notices of termination. That usually gets their attention.
Impossible to say without reviewing the facts and documents.
Deanne M Naydo said:
If proper investigation is done..............is it possible and or likely that the Oil Company has to pay complete restitution for all back monies owed??
Wade Caldwell said:Yes. It all starts with what the lease says. Termination is usually not easy, and there are other ways to skin the cat beside termination, i.e. requesting an audit of records. Response time varies, but usually much faster if it comes on an attorney's letterhead that knows what he is doing.
Deanne M Naydo said:Hi Wade Caldwell, Do you know people who have been through this ...........and how long did it take the Oil Company to respond? Thank you for responding :)
Wade Caldwell said:Have an attorney look at the lease to see if you can start sending out notices of termination. That usually gets their attention.