# NARO Looking For Stories About the Royalty Lease Scams
**URL:** https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839
**Category:** Loving County, TX
**Created:** [December 20, 2018, 6:50pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839 "2018-12-20T18:50:53Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@wade\_caldwell](https://www.mineralrightsforum.com/u/wade_caldwell)
#### Post date: [December 20, 2018, 6:50pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/1 "2018-12-20T18:50:53Z")
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](mailto:gcaldwell@ceflegalsa.com). NARO-Texas is working on a legislative solution to stop these scams.
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### Author:  [@juul](https://www.mineralrightsforum.com/u/juul)
#### Post date: [January 7, 2019, 6:31pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/2 "2019-01-07T18:31:18Z")
Wade-
Look into Texas Shale Leasing, LLC. They do exactly that and should be put in prison!
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### Author:  [@wade\_caldwell](https://www.mineralrightsforum.com/u/wade_caldwell)
#### Post date: [January 8, 2019, 12:41am UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/3 "2019-01-08T00:41:04Z")
Well aware of them. Thanks!
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### Author:  [@wade\_caldwell](https://www.mineralrightsforum.com/u/wade_caldwell)
#### Post date: [March 27, 2019, 9:15pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/4 "2019-03-27T21:15:27Z")
IMPORTANT UPDATE ON HB 3838 – ROYALTY LEASE SCAM BILL
The Texas House Energy Resources Committee had a hearing on the bill yesterday, and it went well. Committee members seemed sympathetic to stopping this scam, and there were no witnesses that spoke against the bill. NARO and TIPRO spoke in favor of the bill, and TLMA registered support.
Of course, it is not the public speakers we have to worry about, it is the people going through back channels. We need to get this bill out of committee and on the House Floor ASAP, so we can also get it through the Senate.
The major issue at this point is that TexOGA has a competing version of the bill they want to push which has some unacceptable limitations, which made the old law, Sec. 5.151 of the Texas Property Code, ineffective.
We are asking EVERY Texas NARO member, or if you want to see this scam stopped, to call, email, write, or visit the members of the Energy Resources Committee and urge them to:
1. Support the current version of HB 3838 supported by NARO and the others, and not TexOGA’s version;
2. Vote HB 3838 out of committee.
Below are links to: a) the current committee substitute bill HB 3838; b) the members of the Energy Resources Committee with contact information; and c) talking points about why this bill is necessary. We need to get this practice stopped! Please go to and follow the following thread, because other updates about this bill will only be posted in the NARO Group. [Litigation Status Update](https://www.mineralrightsforum.com/t/legislative-and-regulatory-news/42383/22).
The TexOGA version is too restrictive because: a) a 2-year statute of limitations is too short; b) limiting liability to the initial purchaser allows the sellers to wash liability by running it through a shell company; and c) it keeps the ridiculous limit that the law does not apply as long as they send the offer and the lease in two different envelopes.
[Proposed Committee Substitute (NARO backed version)](https://www.mineralrightsforum.com/uploads/db5755/original/2X/3/34a3ddec4bbf9db1b78a515aa455fe8ead9d8150.pdf)
[Members of Energy Resources Committee](https://capitol.texas.gov/Committees/MembershipCmte.aspx?LegSess=86R&CmteCode=C250)
[Talking Points](https://www.mineralrightsforum.com/uploads/db5755/original/2X/e/e18e28998e33d65211b90e8bafebf69de6174e26.pdf)
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [April 9, 2019, 3:58pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/5 "2019-04-09T15:58:04Z")
#[Seismic Permits and Agreements – Watch Out!!](https://hilltoproyalties.com/blog/seismic-permits-and-agreements-watch-out/)
"… The **Option to Lease clause** inserted into many Seismic Agreements is a sneaky way for the oil company to enter into an Oil and Gas Lease on very cheap terms.
For example, hidden within a 2 or 3 page, small-print, seismic agreement, there may be a clause stating that the oil company has the _option_, but not the _obligation_, to lease your land for oil and gas development at $50.00/acre. If the seismic research is favorable, the oil company will want to drill, and you will have to accept the $50.00/acre bonus, even if other companies are paying 5 times that amount. If the seismic research is not favorable, the oil company does not have to lease or make any additional payments. It is “win-win” for them, and “lose-lose” for you."
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### Author:  [@wade\_caldwell](https://www.mineralrightsforum.com/u/wade_caldwell)
#### Post date: [April 9, 2019, 10:09pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/6 "2019-04-09T22:09:11Z")
AJ- Thanks for that warning! Could you email me an example if you have one?
HB 3838 was voted out of committee. Please call your State Rep. and tell them you support HB 3838 to stop the royalty lease scam!
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### Author:  [@AJ11](https://www.mineralrightsforum.com/u/AJ11)
#### Post date: [April 10, 2019, 4:59pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/7 "2019-04-10T16:59:44Z")
You’re welcome, Wade. I had never heard of such a ‘seismic’ lease scam so that is why I thought the blog post might be of interest to you and other forum members.
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### Author:  [@Richard\_Winblad](https://www.mineralrightsforum.com/u/Richard_Winblad)
#### Post date: [April 10, 2019, 7:32pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/8 "2019-04-10T19:32:02Z")
Not sure if this is what you are looking for but these individuals may have some information:
## Beware of Delivering Lease Without Payment:
Failure of a company to pay a lease bonus is a theme that has been raised in this forum far too often. Below are a few discussions on the topic. It is always best to exchange a lease for a check at the time of the transaction. This may not always be possible because of distance. In such cases it is probably better to have an escrow company or attorney to hold the lease until the consideration is paid.
Sometimes companies file leases without payment of bonuses.
There have been cases where companies take leases but never file them. They return the leases later stating that they were never funded by the company. In the meantime, the mineral owner cannot sign with another company.
It is much easier to prevent the issue than to remedy it after the fact.
# Below is a sample of Nightmares:
> [@Canadian County - Bonus not paid ! Lawyer?](https://www.mineralrightsforum.com/t/canadian-county-bonus-not-paid-lawyer/5061):
>
> Signed a lease in March 2016 for minerals in Township 10 North Range 5 West. Normally I receive a bonus check within 30 days of signing; however, we are now a good 70 days without the bonus. I did check with the County website and the lease has been filed, and called the landman and he said the checks are going out slowly. The lessee is not an oil company, but appears to be a private LLC. Anyone else had an experience like this? Is it time to contact a lawyer?
> [@Oil Lease Bonus Payment Not Paid](https://www.mineralrightsforum.com/t/oil-lease-bonus-payment-not-paid/3382):
>
> I am a member of a family who has had oil/gas interest in Canadian County for many years. I have never been involved as an active member concerning the leasing process and know little about it. I am now in a situation where I need to acquire some basic knowledge before involving an O&G attorney. Our family signed a 3-year Lease Agreement for a certain amount per acre for a known amount of acreage. Through some research the agreement seemed to be a fairly accepted and a standard agreement if the…
> [@Bonus not paid on a top lease](https://www.mineralrightsforum.com/t/bonus-not-paid-on-a-top-lease/21551):
>
> I recently signed a top lease on some minerals in Colorado. The Land Company now refuses to pay the upfront bonus money. Do I have any recourse if they have not filed the lease?
> [@Help! I was never paid my bonus!](https://www.mineralrightsforum.com/t/help-i-was-never-paid-my-bonus/8615):
>
> Some years ago, there were many complaints that landowners had not been paid their bonus and the lease was filed of record. To help with that situation, I am developing a clause for my Professional Lease Form that reads as follows: PAYMENTS TO LESSOR. Lessee covenants to pay Lessor as follows: (A) SIGNING BONUS: Lessee agrees to pay Lessor a signing bonus in the amount of \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Dollars ($\_\_\_\_\_\_\_\_\_) by company check or in United States Currency. The bonus payment shall be paid to…
> [@Bonus Payment not paid](https://www.mineralrightsforum.com/t/bonus-payment-not-paid/21550):
>
> I recently read a thread about a bonus payment not paid and the lease was signed. Advice was to find out if it recorded and try to null the lease before the fact. This is what I was trying to avoid with Exterra. I want an escrow. I will pay for the escrow costs, just so I have the money before I release the papers. Now this poor guy has to figure out what to do and the advice ranged from hiring an attorney to recording a null on the lease or don’t release papers until the money was paid. I had t…
> [@Signing Bonus Never Paid, Well Drilling in Progress](https://www.mineralrightsforum.com/t/signing-bonus-never-paid-well-drilling-in-progress/24049):
>
> Kodiak O&G retained Lone Tree to obtain a lease from me on mineral acres I own in Dunn county N.D. They sent me leases twice in 2007. I executed, notorized and returned both leases. As both leases looked identical to me I assumed the draft time limit had run out or some such. I followed directions both times and submitted both drafts to my bank for payment. Neither of the drafts were honored, but the lease was recorded both times. Dealing with Kodiak now, they tried to maintain that the leases w…
> [@Mineral Lease Bonus Payment](https://www.mineralrightsforum.com/t/mineral-lease-bonus-payment/43630):
>
> My wife and I signed and returned a mineral lease letter agreement on 11/30/2018 agreeing to lease our minerals effective 12/01/2018. We signed and returned the lease in December with the agreement that the bonus would be paid on 01/01/2019. The letter agreement did not have any stipulation whereby the lessee could void the contract. However, the lessee has failed to honor the agreement and has not issued the bonus payment. Do I have good standing for legal action against the lessee to force pay…
> [@Breach of lease agreement](https://www.mineralrightsforum.com/t/breach-of-lease-agreement/43747):
>
> I own minerals in Section 20, Township 7, Range 2W as well as minerals in Section 17, Township 7, Range 2W. We signed a lease with ProMinerals Partners. Terms $2,000 per M/A and 3/16. ProMinerals has filed the lease in November 2019 with the county courthouse, but we have not received any bonus consideration agreed upon. It has been 5 months since filing and ProMinerals is not responding to inquiries. They offered to let us out of the lease, but I told them I was very happy with the agreement an…
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### Author:  [@MRFAdmin\_SV](https://www.mineralrightsforum.com/u/MRFAdmin_SV)
#### Post date: [January 11, 2025, 5:24pm UTC](https://www.mineralrightsforum.com/t/naro-looking-for-stories-about-the-royalty-lease-scams/38839/9 "2025-01-11T17:24:16Z")