Met with a few people today with Des. I'm not going in details on here, but i stongly encourage anyone that is unsigned to go to his meetings this week. The first is at Union Local Tuesday night. Personally, I don't care who brings the contract to the table or how much this person will make off of any agreement, as long as the lease is there for all of us to maximize our opportunity to capatilize on this gold mine.
Add something constructive or educational or informational to make it better!
You are exactly correct. Why would one spend their own good money on a title search that may not be accepted by the O&G? The O&G is going to run title on EVERYTHING they lease to be sure of what they are putting out their own good money for. If Des was personally guaranteeing (with insurance) titles that his people had cleared and was guaranteeing that the O&G would accept that title work, this might be an acceptable idea, but only if the eventual O&G was to reimburse Des' investor for the already performed title work.
A better way is to put a clause in the lease that says to the best of their knowledge, the lessor believes they are the O&G rights holder, that the O&G must pay on all leases where the title comes back clear, requires the O&G to notify the lessee what defect caused their title to fail on any lease they throw out for defect, allow for a reasonable title curative period to allow the lessor to attempt to cure those defects, and define what can and cannot be considered a defect worthy of failing a lease. There are many attorneys and landowner groups who have successfully used this strategy and it can be very effective when written properly.
I don't believe landowners should pay for a title search. The O&G companies will run their own, and frankly, their word is the final one. If they interpret a document differently than your own personal title agent, they can fail the lease.
Finn , good point .
When I get my computer back I'll dig out some lease language that conveys what I mentioned. Using my wife's today and don't have my stash of docs available.
As a professional woman who's worked in a lot of male-dominated industries, I have a pretty thick skin when it comes to rude comments based solely on my gender. I have also learned that the best way to deal with those kinds of comments is to ignore them. I decided a long time ago that when you roll in the mud with a pig, you just get dirty, and the pig usually enjoys it.*
As I said, I don't have an agenda here, and I'm not really on either side. I just saw a chance to offer a semi-informed opinion, and I was hoping to continue a civil discussion on the subject in question.
*I am not calling anyone a pig, it is a metaphor.
I to lost am a professional that happens to own and operate oil and gas wells .I have been in the business world for quite a while to and close million dollar deals in a construction environment and I works with a lot girls .
I understand and have been involved in most operation in he oil field including the delivery of the product .
There's a lot of people that might not have as thick of skin as you do Lost that I stuck my head out for , that's who I defended and I would do it again !
I'm not a ostrich when it comes defiling a woman !
Sorry to included you .
Don't take it the wrong way Lost .
LostInTheShuffle; Thanks for your input. I happen to like reading facts about the industry. The metaphor about pigs rings true on this forum, although I agree that it becomes tough, even for the educated, to not get drug into the mud and argue about subjects that do not have anything to do with oil and gas. I can't imagine anyone agreeing to pay $50/acre for a title search, especially when the landowners have leased before and know that they own the mineral rights. Let's hope the price of natural gas increases and acceptable language starts appearing in leases/addendums soon.
I need to get out of here for the day, but one thing that every landowner should know is that just because they have leased before, it does NOT mean that they own their minerals. Back when leases were $5-10 per acre, many companies took leases without doing any kind of a title search, as it was cheaper to pay for the occasional bad lease than to run title on every tract.
Good bye Lost .
Ridgeman, you know how you said when you read my comments you have to make sure your not eating or drinking anything because its so funny, This is Hilaraious, you really stepped in it & was working hard to remove shoe from mouth! I am ROFL lmao,
Tom , have you ever felt like you have been poison penned ? Please be careful I bruise like a grape .
Aside form a few pig's this thread really has been spirited you must admit .
There really has been a lot of education given here . I hope the word gets around what the real deal is with title search and what the real buyers think .
Never heard that before, but it makes sense up until the point where the oil and gas company wants to put a well on a piece of property. If no title search was performed and royalties were paid to someone that did not in fact own the oil and gas rights, there would have to be major problems/lawsuits/etc. trying to recoup the royalty money that had already been paid and spent by the landowner. I was under the impression that the oil and gas company always performed a title search.