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Permalink Reply by arminius on March 6, 2013 at 10:13am

I do not see how that would be a conflict of interest.  They are only acting as brokers for the landgroup.  If the landowner is hbp, they are not eligible for the group and would be rejected by the leasing company when a title search is conducted.  Should the landowner contest their hbp status after a title search is conducted, the law firm would be willing to offer services as a seperate transaction.  At that point a potential conflict could develop should the law firm also represent the shallow driller that claims hbp status.  The law firm would be obligated to disclose such a conflict accordingly.

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Permalink Reply by arminius on March 6, 2013 at 11:24am

Yes, you are correct that they provide legal service in negotiating the language of the lease.  The agreement letter contains the following:  Client will be checked to verify that KWGD does not have a conflict due to representing any adverse parties to said proposed client.  The paragraph goes on to provide KWGD's obligation in such matter and their right to reject group participant.  I do not understand why you keep bringing up the shallow driller:  If the group participant has clear title to their mineral rights and is not burdened by an existing lease, how does a shallow driller enter the picture.

Permalink Reply by arminius on March 6, 2013 at 5:40pm

You are a contentious one Jay.  You must be an attorney.  My father was an attorney and at times could be as contentious as you.  I will take note of your concerns as you have proven yourself to be a valuable contributer to these boards.

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