The “Order of Payment” page included in my Matador lease offer contains $/Acre but does not contain the estimated interest or net mineral acres. It shows TBD. I’m assuming they haven’t done their research yet. Normal, not normal, risk? Sign and send with the signed lease? Thanks
I never sign an order of payment! I never hand over a signed lease without getting paid. If you do, a lease can be filed and you might never get paid. I make a copy of the signed lease and use a big black marker across every page COPY DO NOT FILE and send to the agent. I have an attorney, accountant or bank officer hold the lease until payment arrives and it cashed. Then they will hand over the signed lease to the agent to be filed. I understand that it can take weeks to run title. My handing over a copy shows my good faith, so that they can run title. But they cannot have the lease until they pay for it.
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If I have already signed it and have an attorney holding it, how do I know they will get the net acres correct? Is it normal to see TBD?
From your post, I assume that you do not know your NMA. Unless you do your own title research, then you will be dependent on the oil company’s determination. You might ask for a copy of the title history into you. Matador May consider that proprietary information as it will have other unleased owners and will have been costly to have done. But gather and save whatever title information you can amass for your own use and to pass on to your heirs.
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