I have signed and returned an oil & gas mineral lease to the leasing company and processed the bank draft through my bank as instructed. The bank draft was returned unpaid because the account of the leasing company at the paying bank was closed out. The leasing company said they still want all the acreage but are only offering a partial payment by cashiers check with the promise to pay the rest later. Has anybody ever heard of this? Seems bizarre!
I wouldn’t accept that check. I think it would be considered consideration, and the fact that they owe you yet more money, wouldn’t invalidate the lease. It would be a business matter and you may have to file suit to get paid the remainder. I think you should consult an O&G attorney as soon as possible.
Yikes! Who was the company?.
It is not an oil & gas company. It is a company that wants to flip leases to oil and gas companies. Lesson learned!
Larry Seibel said:
Yikes! Who was the company?.
Will call him ASAP.
Thanks.
r w kennedy said:
I wouldn't accept that check. I think it would be considered consideration, and the fact that they owe you yet more money, wouldn't invalidate the lease. It would be a business matter and you may have to file suit to get paid the remainder. I think you should consult an O&G attorney as soon as possible.
I really see nothing wrong with flipping leases if you paid the bonus and hold them legitimately. The problem and what gives the word flippers such a bad connotation is that some receive and record your lease and do not pay, tying up your minerals. Many people will not sue them. Many people will accept late payment if their minerals are drilled before the primary term expires, thankful to finally be paid at last. Some merely wait til the lease expires. I have learned my lesson, that you don’t let an executed lease out of your hands until you are paid. I hope you don’t have to sue as I am having to do. It may be that your flippers are holding the lease because it is free right now to do so. A letter from your lawyer under his letterhead may make them think it will cost them to hold it whether they pay you or not, prompting them to pay or return the lease. I hope yours situation works out easier than mine has.
Wilson Inc said:
It is not an oil & gas company. It is a company that wants to flip leases to oil and gas companies. Lesson learned!
Larry Seibel said:Yikes! Who was the company?.