Just got word that Shell is not leasing anymore currently at the moment. Word is they will be back leasing at some point but currently out of money no more budgeted etc.... Now a bunch of land owners are left with signed leases that are not being paid/honored. Just another example of corporations doing what they see fit promising people one thing and doing another. Just goes to show the contracts everyone sign mean nothing other than locking you in if they choose to do so. So basically if you have a lease with Shell and have not been paid you are not going to get paid at least at this point.
Not true. The bank calls Shell to verify if they are permitted to pay the draft. If Shell says dont pay it, the bank doesnt pay it.
We have two parcels and Amegy sent out payment on one of them yesterday. Still trying to figure out what is going on with the other, but the folks form Southeast in Butler Co. have been wonderful to work with. We were told June 20 and, lo and behold, it was June 20.
Our understanding is that it would be sent via wire transfer, but they sent a cashier's check. Can't say I've come across the reasoning for that or understand it, but that's what happened. Hope that helps to allay any fears others may have.
One other thing. In the time it took me took me to dial Amegy's number, I lost the paperwork and didn't have any numbers in front of me (or that I could find anyway). They need the amount that you are being paid, the date that it was turned in, and the name of the bank. Why they couldn't do it based on name or address, I don't know. Why I couldn't find a piece of paper within 3 ft. of me, I don't know either. Good luck.
Thanks. I cannot begin to tell you how embarrassing it was. The girl was quite annoyed. Oh well, it happens.
Well it seems they are being consistent. Don't worry they will make some bs story up once you do get in touch with the correct person if there is such a person. Once gas prices surge again at some point they will be back wanting to resign at a lower rate with other bs explanations. I am all for gas drilling it's just when they (Shell) doesn't call one back and then lie to them after a lease was signed and payment due is what puts a bad taste in ones mouth.
As we well know from what happened with Halcon in Mercer County, many documents that may bear the the legend "LEASE", are in legal effect OPTIONS TO LEASE or PROVISIONAL LEASES which contain language allowing the O&G companies to elect not to fund bonus payments, so long as they make the election during the "due diligence period". Or a lease might contain any number of conditional clauses providing a certain grace period during which an O&G company would be able to elect to avoid going forward with the" lease". I think Fang has said this on many occasions better than I. The advice in short is READ EVERYTHING, CONSULT AN ATTORNEY WHO IS WELL VERSED IN O&G LEASING, AND MAKE SURE YOU UNDERSTAND EVERYTHING before you sign. The only dumb questions are the ones that you forgot to ask An ounce of prevention is worth a pound of cure. Your rights will be governed by the written document you sign and you cannot rely on any oral promises made by an O&G company or any intermediary.
Birdog, Did your bank charge you a fee for the bounced draft?
Is that through their SWEPI subsidiary ?
Lance, they cancelled a lot in Venango and some in Butler.