Point Energy is ghosting me. I haven’t heard from them since October. Anybody have a good contact?
Also, a friend of mine has a different problem with Point Energy.
She has not yet have completed lease agreements with Point Energy for the Section 9, C23 properties due to the question of executive rights to sign and negotiate. Point Energy provided leases from 1927 as rationale for the executive rights issue and I can’t begin to understand how that relates to our LLC.
Does it make sense to challenge the title search or to simply sign the leases and accept the royalty in the future? Her cousin has been advised that he will not receive a lease bonus due to the executive rights question but will receive future royalties.
Executive rights are most frequently created when a portion of minerals are sold and and the Seller S retains the right to lease the minerals sold to Buyer B, or sometimes Seller S gives Buyer B the right to lease on behalf of the minerals kept by the seller. Example, S sells 1/3 minerals to B, but S keeps right to lease all the minerals. B may or may not get 1/3 of lease bonus, but will get 1/3 of royalties. These retained executive leasing rights for B’s minerals will transfer to S’s heirs or assigns. One complication is that S’s minerals will get subdivided among multiple heirs who may sign leases with different bonus per acre and different royalty rates. So B’s heirs will be paid based on the different leases. Ask for a copy of the deed which created the executive rights. This is another reason to trace the full deed history of your minerals and have copies of the deeds.
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They haven’t ghosted me (yet), but ran into a similar thing in Winkler C23 recently. Lease offered and then pulled back due after several innings of discussions due to a (questionable) Leck 1926 lease held by production for 100 years. I started a thread here about it.
We have done Winkler leases recently with Caliber Land Management whom I think were also repping for Point. We also are negotiating with a different landman for a lease in other Winkler blk/sections right now, also for Point.
HTH