There is a company in Dallas, Southwest Petroleum LP, that has a huge direct mail campaign offering to purchase mineral rights from individuals. All of my relatives and friends have received this offer. It is usually accompanied with a non-negotiable $250 check.
Unfortunately my father, who has been diagnosed with Alzheimers disease, received one of these offers and executed an agreement with this company. He said he was confused and thought he was leasing the mineral rights on a different piece of land our family owns. He did not deposit any money.
I contacted an attorney and was told the company could take back the offer and cancel the contract, especially since no money has changed hands but after contacting the company direct and explaining the situation it looks like they will make it more complicated.
I am posting to see if anyone else has had an issue similar to this and how it was resolved.
We have received similar offers. I think the last time I went to the post office there were eight of them in the box. Shred them into a thousand pieces. Some may be from reputable sources, but most are low lifes trying to pick off the low lying fruit.
Unless you are dying and have no family, there is no reason to sell your minerals.
Tell your father to not do anything with the mail until you have seen it. Pay attention to family finances. There is a whole sub culture out there that preys on the elderly and infirm.
One of the elements of being able to contract is having the capacity to contract. I am not Sigmund Freud, but it sounds like you father may have lost capacity to contract.
Best,
Buddy Cotten
This particular company and another one who uses the same font style and are sometimes partners are in trouble in several states for this particular ploy. Use them as a canary in the mine, something is happening in the area, but never, ever sign anything with them. Read their paperwork carefully and you will see what they are really trying to take from you.
I have kept their paperwork, marked through it with a sharpie and left it for my heirs with a note to never do business with them.
Contact the Attorney General's office in either Texas or the State that the mineral rights reside and see if there is a process for filing a complaint against this company. Also research on the web to see if there has been other litigation filed in the past involving this company. You can do a search by State and by Court system. You may find others who have experienced similar issues if you do a little sleuthing.
Mr. Barnes is correct. Getting these “we want to buy” letters is a good sign. Nobody buys worthless mineral rights.
Your father would have a very strong case in court. The judgment rendered would most likely be that he did not have the capacity to know and understand what he was signing. It would probably be a slam-dunk decision, and the buyer would be required to re-convey. There are cases of record that support my assertion. I have read them. The problem? This would cost time and money. No, I would not expect the buyer to cancel the deal and convey it back based on your call. A cover letter from an attorney threatening suit may get their attention, or it may not. You will probably have to sue them. The question will be whether it is worth it.