On March 17th of this year I executed a lease with ET Energy Partners in the Robert Steel Sy’s A-820 & 827. The lease had a clause that gave them 90 days from the date they received the lease for Title review. I am approaching the 90 day mark and feel as though I’m getting “the run around” by this Company. The mineral acres have been in my family for years and have been previously leased at least three different times. Any ideas as to why this may be taking so long? Never had this issue with leasing before. Could they be stalling and attempting to “flip the lease” to someone else. Any thoughts are appreciated.
The answer is, you are most likely dealing with a broker/flipper. I do not deal with drafts anymore. I will give a Letter Agreement for no more than 20 days to complete title and issue payment. Once you hit 90 days, request that your bank send a demand for the return of the OGL.
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The 90 days are Business Days. Weekends, Saturdays & Sundays as well as Holidays dont toward the total. This is of coarse without reading the document.
More than likely, its someone trying to Flip th3 the deal, but likely as if you dont own the rights, you can’t convey them. Also why pay someone when they can scoop up the deal after the letter agreement expires.
Not sure I understand your letter agreement comment @1Michael. I provide a commitment to the OGL terms and provide 20 days for title and payment. I control the document at this point, so if there is no timely payment, I do not have trouble with recovering the executed OGL. This is no different than an OGL/Draft combination, but the mineral owner maintains control. Also, I have a policy of only leasing to principals, meaning no direct to brokers.
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James, can you post an example of your “commitment to the OGL terms” form/letter? I’d like to see how that reads. TYIA! 
Many mineral owners will not hand over a notarized lease until payment is made. Will not deal with drafts. They will get their bank, attorney or accountant third party to hold the signed lease until the check clears and then release it to the agent. They will send a copy of the signed lease with bold black marker across each page that says COPY DO NOT FILE-especially across the signature portion. It proves good faith that the lease is ready and being held for payment, but does not allow the filing in the courthouse or flipping until they are paid. Most will include a Letter Agreement with a reasonable time frame for title work to be done or the lease will be returned to them.
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@M_Barnes offers an excellent alternative to a letter agreement. I do not supply copies of a letter agreement for the forum since that might be construed as offering legal advice. However, such an agreement does not have to be complex. Simply say you agree to the terms of the attached (unsigned OGL), the bonus to be paid, and the date that the bonus amount must be paid for a signed OGL to be delivered to the Company. This can be done via email to expedite matters and maintain a digital record.
If the Company balks at either of these options, ask them how they propose to do this so you are fully protected.
Thank Ms. Barnes, makes complete sense!
Thank you James, this also clears this up in my mind, excellent advice.