Treat any active leasing or purchasing decisions carefully

[fjonesiv]

Treat any active leasing or purchasing decisions carefully

For those involved in any type of leasing or selling transactions - be very very careful about what you are signing these days. (Well, that really should be your perspective at any time). I guess I’m saying that it’s particularly important this very moment. As I write, I see a note flashing across my screen that oil has just dropped to its 18 yr. low.

Specifically, the vast majority of the paperwork used by those buying and leasing minerals provides for them to quit or alter the pricing of most deals totally at their discretion. Thinking that you’re going to outsmart the other side of the transaction by acting quickly “before things get worse” is a fools errand.

The majority of the paperwork (regarding buying or selling) that is currently in the hands of mineral owners is worthless - errr, well except for other uses as I am seeing in the news

[TODD_M_Baker]

Please explain how you know & why you think they are worthless?

[Nicholas_C_Miller]

Are you just saying to make sure a purchase and sale agreement is binding as to a specific price subject only to due diligence? If so, I agree. The initial forms typically sent out by mineral buyers allow them the ability to walk away if they change their mind. This makes the contract of questionable enforceability if they do not pay for that termination right with some sort of consideration. I haven’t seen that problem in leases unless you just mean a revoked offer prior to the finalization of the lease.