Is anyone aware of any recent leasing activity in Madison County?
Thanks.
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Most leases since February of this year are by Hawkwood Energy East TX and Giant Energy Co. You can pull those memos to find legal, etc on courthousedirect.com - search Madison county, document type āmemoā and there you go. Hope that helps!
There has been leasing activity around the Normangee area.
Yes, Iām aware. We were contacted by a Landman making offers to lease around Normangee on behalf of Bull Run Resources LLC. It appears this company is INACTIVE per the Texas Comptroller. The landman has gone silent since asking him to confirm. So beware!
@MCE my family was also contacted by Bull Run (Brian). Is that who contacted you?
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It was Cole Lucien, but learned there are multiple of them canvasing Normangee. The lease reads like a disguised royalty deed. Very scammy. Also he said they were leasing in behalf of a larger oil company but didnāt say who that isā¦only after a month and when pressuring him for verification. Beware!
I found some info about this kind of scam on Mineral Rights Podcast on YouTube.
I agree that something does not feel right about this lease proposal. I do not think I am going to entertain a lease until there are a few more parameters defined. Executing a questionable lease form at a reduced royalty, to a unknown entity, does not usually yield great long term results. If we all stand our ground I have a feeling we may get some answers.
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I am curious as to why anyone would continue participating in a leasing discussion when there are red flags or serious concerns.
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I told him to delete my personal information as I donāt make agreements with ambiguous companies. He was primarily dealing with a family member who is a co-owner for a few weeks. Iām not sure how much was discussed and agreed before I saw a copy of the draft. At that point, I began researching and couldnāt confirm any of the details.
So you actually saw a lease agreement? Tell us about it. I was told one would be sent and have not received anything as of yet. I am curious if it is as nasty as some I have seen in that area recently.
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Yes, I will say that there was a paid-up oil and gas lease (similar terms to others here) and an āaddendumā with a separate, stand alone, notary acknowledgement page. The addendum reads like itās giving them royalties.
None of the information about the company checks out like I already said and he could not confirm it. I told him lose my personal information and I moved on with life.
Thereās recent information about this type of mineral lease scam on the mineral rights podcast and other resources. Consider yourself warned.
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I agree with your approach. I am watching the base forms used by the various players in Anderson/Madison/Leon/Houston. These forms are truly getting ridiculous. It is like āLet me poke you in the eye with a sharp stick and then we will act like we are best friendsā. The more mineral owners that take an educated approach and make some good terms happen the better off we all will be. We will not get the terms we want until a few more wells are getting close to permitted.
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This is a pretty standard way of doing things. You have a separate page with the unique language/terms. If it was the other way you need a microscope to read all the fine print!
You feel free to sign anything you like. I determined the company is non-existent/illegitimate/bogus/fake/a scam, therefore it doesnāt matter which document format or donāt size they use.
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There is no standard lease form. The landman or oil company has the lease in word format and manipulates it in their favor and gives it a form title and puts it in 9-font to look āofficialā and gives it to the mineral owner. Sometimes they add an addendum. They are based on 1960ās era leases, but updated to include newer concepts. The whole idea is for you to negotiate changes to an unfavorable form. Ask for lease in word and change font to bigger size so you can read it. At the same time, understand that your ability to negotiate more favorable terms is limited to your net mineral acreage. If you own 1/2 net acre, then you can be carried as unleased. If you own 300 net acres, then you have more power. And your own attorney or advisor can help, but you will incur costs.
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Bull Run SOS Good Standing.pdf (17.2 KB)
The Bull Run in your post is not the correct Bull Run. The company leasing is a Wyoming based LLC and shows to be in good standing. Just want to help clear that up.
MCE, I inserted the Secretary of State for Bull Run in Akranchās post. This may help put you at ease with who you are dealing with. They are a properly filed LLC in good standing. I know of several who have leased to them and were paid very quickly.
Thanks for you research, however, I decided to move on since the landman was not forthright and behaved in other questionable ways.
Producers 88 is pretty standard. When I was leasing we were not allowed to change anything, the form was locked!