Anyone familiar with this company ?
Signed a lease with them in early August, try calling them and all I get is an answering service/reception promising to pass along my message with no reply. Tried e-mailing and texting the person I signed with and no reply from them at all.
The lease allows 90 business days for payment - so they have until mid December (My mistake for agreeing to such a generous time frame and not getting bonus up front). But not an encouraging sign when your unable to reach anyone with a company.
To date, lease has not been recorded.
I did do some homework on the company and they actually have signed a few leases, all within 30 days of my signing it appears, in Ohio. None have been re/assigned to another producer yet. I think its obvious they are signing for someone else or in hopes of cashing in on production in the future.
Does it normally take this long to review title and issue bonus on a lease. First time going through this - prior lease on property was under my father.
Did you obtain a Surrender of Lease from the previous Lessee? If not, might be a first step.
Did you consult an attorney with OGM rights experience before signing? Might ask them what they know or are hearing.
Depending on the size and manpower of the outfit you signed with, it might take more than 90 days to search Title for various properties?
Other leases signed at the same time not being recorded is not unusual, as they might record them all at once.
My (admittedly fuzzy) math says 90 days from 'early August' would be early November??
Wishing you good luck here.
- Yes, a release of the prior lease has been obtained and is in process of being recorded. Actually are 2 parcels under 2 leases, 1 already released - 1 pending recording.
- I did consult with who I felt is a competent O&G attorney on this matter. He is handling a different matter involving a gas lease for us and took a look at it and said lease was good as presented. He had never heard of the company before - just pointed out the obvious, they are newer and look to be a mineral buyer/flipper.
- I understand they typically take all leases at once to the clerk. Mine is the opposite situation though - others in the area have all been recorded EXCEPT mine in our county. I expect the person recording to do "1 trip" to the recorders office - once a week, or once a month - depending on how much they have to record.
- 90 days is Business days on their lease. That was my first thought as well until I re-read the lease.
Of course I have had a few people telling me horror stories and how I never should have signed a lease without the bonus paid immediately. I do know this process is similar to how my father handled prior leases (doesn't make it right of course) and the attorney who looked at this did not see any issue with the 90 business day language (again, it was a quick free review - so might have gotten what I paid for there). Was explained to me as they need to verify the actual net mineral acres owned before payment (which makes sense...but then again why not do the title work verifying this up front before signing the lease).
More than anything, its the lack of communication that has me worried. Beginning to find out that is just about ANYONE in the O&G industry though...Have spoken with about 8 people recently asking for a quote if we elected to sell minerals and a couple who offered to obtain a lease for us if this falls through...1 person has bothered to respond. I get the market is down - but cannot believe how lacking communication is between many of these companies. Of course many are just playing a game....get the lead on cheap minerals, wait for the opportunity to make a quick buck and then try to squeeze as much as you can out of the middle connecting landowner and O&G exploration company. I'm not against the middle man making a buck on a speculative investment...but they want to deal in sure things only and want to make the majority of the money for doing it.