My family was located one at a time till all where found October 2014) to sign a mineral rights lease for land in West, TX. (Lamesa, Dawson County) It is 160 acres that is required for the company of NM Ventures, LLC to fulfill acreage requirements to drill with the additional Barron family leases they have obtained. The leases where all received by the family in discussion, and returned. The family has been left very vague as far as when payment is to be received because of no additional contact from Tom Stratton, NM Ventures, LLC. Although, I did receive an email 1st week of December from Mr. Stratton that he apologized for the delay in contact, and that all leases where received and he was going to speak with his attorneys about releasing funds. There has been no additional contact to anyone in the family. Are they required to still pay the family for these leases? Is this normal protocal?
Kim- You would have to look at the lease or the cover letter that accompanied it to determine whether they are obligated to fund once you tender a signed lease. Most companies will fund eventually, but a few are lease flippers or have other issues, and may return the leases claiming the company changed its mind. There are a few scam artists who will run out and record the lease and not pay you, trying to tie up your land.
Bottom line is never release signed leases except with a check exchanged. If a large amount with an unproven company, insist on a wire transfer or cashier’s check.
I don’t know the company you dealt with.
I looked up info on Company. Seems they have several leases and a good reputation. I have been getting offers on my portion of the mineral rights which is only 4.4 acres. What would you say is fair to sell outright?
Wade Caldwell said:
Kim-
You would have to look at the lease or the cover letter that accompanied it to determine whether they are obligated to fund once you tender a signed lease. Most companies will fund eventually, but a few are lease flippers or have other issues, and may return the leases claiming the company changed its mind. There are a few scam artists who will run out and record the lease and not pay you, trying to tie up your land.
Bottom line is never release signed leases except with a check exchanged. If a large amount with an unproven company, insist on a wire transfer or cashier's check.
I don't know the company you dealt with.
In lieu of requesting a release, especially if they have not been filed, request that they return all of the executed leases. You don't want them filing them at a later date. If they were to return the leases to you, you could also check them for file stamps by the Office of County Clerk. If there are no stamps on the leases, it means they were never filed. All of the above advice depends on the reply you receive back from the co., if anything.
Dave,
You did a great reply!
This obviously will be very helpful for mineral owners who were promised payment for their valuable minerals, but received nothing. Makes one want to think of an internal control, e.g., next to your signature is a statement, "Lease becomes null and void if a copy of the cleared check with the usual banking information is not attached to the lease and filed at the court house within 90 days." You probably have a better solution since this is your turf.
I learned that from an operator who would put at the bottom of a footage or turnkey drilling contract next to his signature, "No log; no pay."
Bob Malone, Malone Petroleum Consulting
Kim Reck said:
I looked up info on Company. Seems they have several leases and a good reputation. I have been getting offers on my portion of the mineral rights which is only 4.4 acres. What would you say is fair to sell outright?
Wade Caldwell said:Kim-
You would have to look at the lease or the cover letter that accompanied it to determine whether they are obligated to fund once you tender a signed lease. Most companies will fund eventually, but a few are lease flippers or have other issues, and may return the leases claiming the company changed its mind. There are a few scam artists who will run out and record the lease and not pay you, trying to tie up your land.
Bottom line is never release signed leases except with a check exchanged. If a large amount with an unproven company, insist on a wire transfer or cashier's check.
I don't know the company you dealt with.
Kim Reck said:
Kim Reck said:I looked up info on Company. Seems they have several leases and a good reputation. I have been getting offers on my portion of the mineral rights which is only 4.4 acres. What would you say is fair to sell outright?
Wade Caldwell said:Kim-
You would have to look at the lease or the cover letter that accompanied it to determine whether they are obligated to fund once you tender a signed lease. Most companies will fund eventually, but a few are lease flippers or have other issues, and may return the leases claiming the company changed its mind. There are a few scam artists who will run out and record the lease and not pay you, trying to tie up your land.
Bottom line is never release signed leases except with a check exchanged. If a large amount with an unproven company, insist on a wire transfer or cashier's check.
I don't know the company you dealt with.
Kim Reck said:
Kim Reck said:
I looked up info on Company. Seems they have several leases and a good reputation. I have been getting offers on my portion of the mineral rights which is only 4.4 acres. What would you say is fair to sell outright?
Wade Caldwell said:
You would have to look at the lease or the cover letter that accompanied it to determine whether they are obligated to fund once you tender a signed lease. Most companies will fund eventually, but a few are lease flippers or have other issues, and may return the leases claiming the company changed its mind. There are a few scam artists who will run out and record the lease and not pay you, trying to tie up your land.
Bottom line is never release signed leases except with a check exchanged. If a large amount with an unproven company, insist on a wire transfer or cashier's check.
I don't know the company you dealt with.
I have been made an offer to buy my mineral rights in West, Tx. What is the standard procedure for this? How do i protect myself and be sure of payment?
Kim-
Treat it like a real estate transaction. Only exchange the original deed for a cashier’s check or use an escrow agent. You can also do an earnest money contract, but may not be economical to go that expense on a 4 acre tract.