Has anyone heard of a Prosper Mineral Broker. Company states they work for XTO. Has anyone ever heard of royalty reassignment form and what is the purpose of this form.

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Ryan,

    I haven't heard of them but they sound very honest since any documents you sign for them will more than likely "Prosper Mineral Broker" not you.

That's being downright Upfront about their reason for dealing with a mineral rights owner.

The Royalty Reassignment form more than likely will reassign your royalty to Prosper Mineral Broker.

Even their forms are forthright. My Ratings: Honest - Not Really.  Ethical - Definitely Not.

I did an Internet search. There must be 2 people in the company since they are listed as plural "Prosper  Mineral Brokers".

Here is what I found, it doesn't look good for you if you deal with them assuming the below information from Texas is correct. This sounded like a "Kitchen Table" business to me, but it may be a big enough company to have 2 chairs at the Kitchen Table.

Prosper Mineral Brokers LLC

Active Whitney, TX

Nonclassifiable Establishments

Prosper Mineral Brokers LLC filed as a Domestic Limited Liability Company (LLC) in the State of Texas on Sunday, January 6, 2013 and is approximately two years old, as recorded in documents filed with Texas Secretary of State.

D&B Reports Available for Prosper Mineral Brokers LLC

Companies

Prosper Mineral Brokers LLC lists two other companies as an officer in their company. It is not uncommon for one company to hold a position in another company.

Teergas Resources Corp.

Current roles include:

Member

Previous roles include:

Manager

Incorporated

Texas in 2012

Active Status
3 Years in Business
0 Officers Found

My question is ....If you own the royalties why would you want or need to reassign them to anybody? and why would some outside company be wanting you to sign anything to do with a lease that you have with another company?........LANDOWNER BEWARE......something fishy going on............I would only do any dealings directly with the company I am leased with and would certainly have my attorney review anything before I ever signed it.....sounds to me like a scam.........I have mineral rights and I wiill never sign anything to do with reassigning my rights

Ryan,

It is landman company.  XTO uses them to do the leasing footwork.  I spoke with Ron Forman who works for Proper Mineral Broker but represents XTO here in the Butler County, PA area.  There was never any mention of Proper Mineral Broker during the negotiations and I eventually signed a lease that was strictly between XTO and myself.

Prosper Mineral Broker is a legitimate landman business (for whatever that is worth!) and they do represent XTO.

However, I do not know what a "royalty reassignment form" is.

Good luck!

Phil

Can't decipher what Ron is actually trying to say through his thick layer of sarcasm, but my guess is they are a broker/land company middleman working for an exploration and production company, like Phillip says.  Not sure why they would have you sign a royalty reassignment form.  Read everything carefully and consider getting an attorney to look at it.

G.H.

When I worked with them, they were not a middle man (meaning in a business sense) or broker, they are just a go-between from the O&G company to the land owner.  XTO tells these guys where they want to lease land and gives them a "starter" lease with XTO's name on it.  I also negotiated a lease with Rex here in Butler County, PA, in that case, the land man was an actual employee of Rex's but he functioned just like the guy from Prosper.  The land man from Rex no longer works there which is one of the reasons companies like Prosper exist.  The need for this type of land man work ebbs and flows in any given area.

Ryan,

I'd be interested to hear more about the "royalty reassignment form".

I used an attorney each of my leases.

Phil

Yeah, I understand how the brokers/go-between companies work, and I understood your first comment... just a poor choice of wording on my part.  Thanks for clarifying, though.  Good information.

Its actually called a assignment of royalties.The broker is telling me since I still have a mortgage on my house which is on my acerage. I would get royalties, but if I would be unable to pay mortgage my royalties would be rerouted to the bank so it is paid. And that the bank has to consent to my oil and gas lease. But I thought this was already done when I sign lease 3 years ago. Thanks for the help! I greatly appreciate the feedback!

Phew, I can finally post!  I haven't been able to type in anything here for several weeks.  I had posted a while back about receiving a form "from XTO" about adding my address and specifying the lease and renewal terms to my deed at the courthouse.  It looked legit, so I signed, had it notarized, and sent it back.  The company that sent the form was Prosper Mineral Brokers, not XTO, but it mentioned only XTO on it.  And when I got a check reimbursing my $2 notary fee, it was from Enduring Enterprises, LLC.  These oil/gas companies appear to have multitudes of layers/ subcontractors, and trying to figure out who's doing what and for whom is certainly confusing. 

There's nothing illegal or unethical with what they're doing. What's more important is WHO they are and whether they're being up front in their dealings with the mineral owner.

call Money for Minerals they can answer your questions and help you for free.

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