Waiting to get paid?

Have you signed a lease and are still waiting to get paid? How long has it been? Who did you sign with? What is the wording in your lease?

Have the OG companies drilled, but you haven't been paid? Was the payment what you expected? How much did you get per acre/month?

Where is your property?

We are thinking about signing and want to be protected and have an idea of how long it will take to get paid and what kind of wording works. There are tax consequences and planning that need to be considered and it would be helpful to know a timeframe. My wife's uncle had a well drilled (shallow) and is now HBP- his last royalty check was for $.75, yea, that's right 75 cents!

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Permalink Reply by Terry W. on October 13, 2011 at 2:50pm

I have heard reports of taking 88-89 working days.  No hurry on their

part..keep the money as long as they can.

I am waiting for mine so I can go to Florida for the winter months.

 

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 13, 2011 at 3:30pm
Paying off my mortgage and a few other bills and getting a decent (not new) truck. Going to be a big help. Life is good! Florida sounds pretty good too.......maybe when the royalty checks start coming!! Good luck to all.
Permalink Reply by Terry W. on October 14, 2011 at 7:47am

I signed the 17th.....

let us know when the bank calls you.

Then I can get excited!

2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 14, 2011 at 9:25am
Sure will Terry. You do likewise.
Permalink Reply by Terry W. on October 21, 2011 at 2:16pm

Glenn:

I signed on the 17th....let me know when you receive your bonus..  Thanks

Permalink Reply by Dave on October 21, 2011 at 3:30pm
terry I am close to signing if you could friend me or 724-421-7112
2s72s0k9mm8gdPermalink Reply by 2s72s0k9mm8gd on October 21, 2011 at 4:02pm
Absolutely. Congrats!
Permalink Reply by Frank Walker on October 14, 2011 at 8:17am

Hi Mike

You have asked many questions but you did not provide us a key piece of your data:

With which company does it look like you will be signing up?  Some are better than others.  Some have great records, others not so much.  So it would really be helpful to know.

On your key question, regarding payments and timing of payments:

This is not something about which you should be particularly concerned.  Your lawyer, if you have chosen wisely, your lawyer will include the critical needed provisions in your lease.

And if you have no lawyer, the issue of payments will pale by comparison with all the other problems likely to come your way after you sign.  So once again, payments will not be a big deal for you.

FWIW . . .

In my own lease there was strict language regarding payments, the timing of payments, how long after individual well completion they had to pay me . . . . stuff like that.  The gas company has complied with these provisions to the letter.  But of course, my lease was not written by the gas company or by some landman working for a gas company.  If they had done the writing, I still might be waiting for my money.  

 

Permalink Reply by mike4t on October 14, 2011 at 9:02am

Thanks, Frank,

I don't really know who we are going to sign with yet and our group has chosen to use at least 2 seperate lawyers so that we have at least one good opinion. Seeing as how this is a fairly "new" industry to this area, I'm sure that a lawyer can call himself an O&G attorney, yet not be totally familiar with certain strict wording- that's why I was asking what wording seems to work.

As for the timing of payments, someone mentioned that they were supposed to get paid but the O&G company "lost" their paperwork and had delayed their payments..... Does the lease that you signed have provisions for delay? (penalty and/or interest payments?)

I want to try and get the best wording possible before I ask my attorney for a review- I might as well try and save some monies somewhere even though the final reward will be good. I just hate to have him look at the lease 12 times @ $350/hr as opposed to once or twice.

I want to be as well informed as I can when a lease is finally presented to me, so that I can tell the landman yeah or nay on certain addendums so that he knows we're not pushovers.

 

As always, further comments are appreciated !!

Permalink Reply by Mark Baker on October 14, 2011 at 3:40pm
This topic seems to be a trend that is becoming more and more common these days and it is a shame because many people depend on that money after signing their lease.  If anyone is looking for a good law firm that deals in oil and gas matters (especially for non-payment of bonus/delay rentals or royalty payments as I have been reading so much about) feel free to contact me.  I have used, and know the attorney which runs a law firm in northern WV.  He has been very successful dealing with many of these large companies and getting lessors their money. The firm specializes in oil and gas, has a very friendly and talented staff, and has been practicing in WV for ten years.  They also regularly modify and negotiate leases to the benefit of the lessors, and deal with issues that many attorneys do not seem to know much about or want to deal with, one example I know of is collecting royalties from coalbed methane wells in WV for oil and gas owners that were never leased, but have a producing well on their property.  If I can be of any help to anyone by putting them in contact with the law firm just let me know.
Permalink Reply by Nancy Mosley on October 15, 2011 at 4:25am
Could you post the name of the firm here?
Permalink Reply by Mark Baker on October 15, 2011 at 8:04am
Well I don't think your allowed to do that on the site first of all (I may be wrong on this though) and do not want to get in trouble with the site for just trying to help some people out the situation I have seen this law firm have success with.  And second of all this law firm has excellent personnel and resources which I have not seen in other firms, and they have helped me out multiple times, so I do not know if they would want me to broadcast their name on a forum when one of the ways they are so successful is by staying under the radar. They literally treat their clients like friends and family, and I do know choosing their own cases is a privilege they enjoy (so they do not get overloaded or have to outsource to other attorneys who do not hold the same outlook on the way they treat their clients and approach their cases).  If you would like to email or message me however, I can put you in touch with them, consultations are free and they are taking new cases for those interested, I am sure they can help some of you from what I have read on here.

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