Has any royalty owner received an oil and gas offer sheet requesting your signature…prior to receiving a completed lease form? I recently received such a form and this was a first for me. I assume this is not legally binding to signing the actual lease. Comments please.
Principle 1: Never ever sign something of which you do not understand the effect of.
Principle 2: It is the language, wording, and meaning of the body of the document that matter; how something it titled is by definition short and without detail. The phrase “offer sheet” is near meaningless.
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If this is the “courtesy letter” in OK before pooling, ignore it. You do not want your signature out there floating around when you do not know what you are agreeing to. You can either lease (recommend getting legal advice before doing so) or go to pooling which has its own advantages.
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If you don’t mind my asking, what are the advantages to pooling?
This a branded sales technique. The intent is to get you to feel committed to the transaction prior to viewing the specific terms.
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