My family signed a lease and the company singed lease and sent it to us. Now it is time for bonus payment and they say they can't pay or honor contract because another company has a shallow well on the property. I am understanding that this is a legal binding contract. Can someone please give me some advise on how to handle this?

Views: 356

Reply to This

Replies to This Discussion

There's probably a clause in the contract that you signed that says the property has to pass a title check.  If another company has a shallow well, that shallow well most likely holds all depths of the property under a lease.  If that is the case, you, as the property owner, shouldn't have signed a lease if you were aware of it.  Whether you are/were aware of the existing lease with shallow well and/or if you are receiving royalties from it is a whole different story.

There is no contract. You were unable to fulfill your part of the deal - conveying oil and gas rights.


Support GMS

Local Groups

Blog Posts

American LNG Export Capacity Growing By Leaps and Bounds

Posted by Thomas J Shepstone on December 11, 2017 at 9:09am 0 Comments

American LNG export capacity is on track to grow to a level in 2019 that is 10 times what it was less than two years ago, creating opportunity everywhere.

Many, many opportunities are being created in this country…



December 2017

© 2017   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service