Folks-
Very interesting reading, all of this. I got two offers from this company, Upstream Innovations Inc. I accepted because they had all my family (also owners) info correct, from around the country. I have never had reason to question this kind of paperwork before, it was exactly like other lease assignments I’ve signed in the past. The problem is I took the bank draft to my bank and they didn’t want to mess with it and the fees involved. I called Jim Gilik to ask for a cashiers check or something easier but the answer was no. Long story short my bank manager finally agreed, Jim Gilik said the fees would be refunded, so I signed the stuff (1/18/2010) and waited. I just got the drafts back from the bank NOT PAID!
Watch out. I'm checking further and will get an attorney on this.
Thanks for your good help.
K
http://www.mineralrightsforum.com/profiles/blogs/oil-and-gas-bank-d…
There is likely not a thing that you can do to force payment.
If the land company performed in a typical fashion, then the draft could be not honored with no repercussion to the Drawee.
See the above link for suggestions on getting your lease released.
Yes, hindsight is 20/20. We no longer accept drafts for any of our mineral lease agreements we sign. We also require that the entity we sign lease agreements with are an actual Operating O&G Company that will be drilling the well. We would not be interested in signing a lease agreement with anyone who is going to sell it to an Operator and make a quick buck off of us, the mineral owners. That way we are in a better position to negotiate better terms. If a land agent does not wish to disclose who he/she represents, then we tell them we cannot proceed in negotiating a lease agreement. I have not had any problems with this request. It sounds like your Family situation is similar to mine and you have extended family members owning an undivided interest in the mineral estate. We found it better to have one person manage the minerals for all Family members and your negotiating leverage is much better if all owners cooperate. I know, easier said than done.