In preparation for the upcoming legislative session, NARO-Texas is looking for good examples of the “royalty lease scam” being perpetrated these days. This involves approaching someone with an active lease and producing well, usually elderly, and presenting what looks to be an oil and gas lease. In return for a lump sum payment, the document is actually selling 75% of the royalty stream in the lease. The document is usually presented as a top lease. If you know of anyone who this has happened to, please contact Wade Caldwell at gcaldwell@ceflegalsa.com. NARO-Texas is working on a legislative solution to stop these scams.
I’ve seen this, but in the scenario that came to me, the lands were non producing and they did not purchase royalty from the entire mineral interest. Very shady!
Buddy Cotten
I am going to reply to this but first I need to gather some paperwork. I lost about 75% of my royalties several years ago for a lease in Fort Bend county near Orchard, Texas. I’ll reply as soon as I gather the paperwork. It is 3:01 am and the information is in the bedroom where my wife is sleeping. I have learned to never wake a sleeping bear. lol