The leasing company received my contract on December 2nd. When should i receive the check?
It is wiser to get paid the day that you hand over the lease contract. That being said, you may have had a letter that said how many days until payment. Might have said 90 days or 60 days. They are probably in the midst of running title, so that takes a while.
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I received a letter from Surprise Valley Resources requesting to lease my minerals in Leon County. This letter was included with a Paid Up Lease detailing the terms, royalties, etc., which is similar to a previous lease I received for other tracts a few years ago. Also included was a Memorandum of Oil, Gas, and Mineral Lease that is supposed to have my notarized signature and returned with the Paid Up Lease Agreement. This memorandum includes the primary term(3 years) and an option to renew (2 years) and descriptions of the tracts involved. It also includes this reference:
“Reference is hereby made to executed copies of Oil, Gas, and Mineral Lease in possession of Lessor and Lessee respectively, for all of the provisions thereof, and by this reference same are incorporated herein and made a part hereof in all respects as though fully set forth herein.”
The letter also says “Bonus payments are subject to title confirmation and final management approval.” So there will be no check for me until they’re satisfied. Is this a new process?
First of all, it would be really wise to get an attorney to review the draft lease because it is most likely all in the grantee’s favor, not yours. A good attorney can get you better clauses and hopefully a higher royalty and higher bonus.
Most of us would not want a two year option to renew as it gives too much power to the grantee.
Really bad idea to hand over a lease without getting paid. They can file it and you may or may not get paid. Many of us will have an attorney or accountant hold the signed lease until payment is received (upon completion of title), but they cannot file the lease until we are paid.