Letter of Intent to Purchase Mineral Rights

Law & Legal
1

On July 12, I signed a Letter of Intent to Purchase Mineral Rights w/ Southwest Energy. The letter stated that w/in 15 business days of receipt Grantee will conduct a title review. It is Aug 12, and Southwest has not replied to my request for the status on the title review. I’ve called three times and text them 3 times and still no reply. Am I legally bound to this agreement even though I haven’t received or signed the mineral deed to Southwest.
Property is in Stephens county, OK Sec 26 2S 4W 40 nma
$8,100 p/nma

Your response would be greatly appreciated Debbie

2

Sounds like a breach, I would withdraw your letter of acceptance via certified mail. May need attorney involvement.

3

What does the Letter of Intent say? Some have an “out” for both parties if XYZ happens. Some also only have an out for the buyer

4

Richard, just spoke w/my attorney and he also did not believe the letter of intent was binding. First, they had 15 days to check title and either object the title or pay, and they have done neither. Second, the copy of the letter of intent that I have is unsigned by Chasen (landman) . Third the deal is made contingent "on the entire mineral interest being leased at 25% royalty, which is completely vague. And since I’ve tried to contact them several times with no response.
So I sent Chasen an email and text stating that the letter of intent is not in effect.

The property that I own in Stephens County is in a popular location. Next time I will be more selective. Or maybe even think twice about selling. :woman_shrugging:

Richard thank you for your reply, Have a nice day!

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5

Good idea. You were probably dealing with a company that flips leases or purchases. Have your attorney review the next offer.

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