Be aware that even if the check comes much later than required, you can bind yourself to this lease by cashing it. If the check is received beyond the time required by the lease, you have a second chance to decide if you really want this lease.
Here are a few things I would suggest you consider:
If the land agent (with overhead costs of employees, building rent, etc) can make money on this, they are getting both bonus money and a cut of the royalty. Their cut comes out of what the right operator might pay you.
If you cannot trust them to pay you on time, what makes you think they will follow other terms in the lease?
Chesapeake is one driller known for using little know agents, even shell companies, to do their leasing for them. Why? Because they have a bad reputation for treating landowners poorly.
Here is a good quick test for a bad lease: if it is a 1-3 page lease, it is so lacking in details that the operator will be able to do whatever they want. Generalities, vague and missing language are not your friend as the landowner. That is not to say every long lease is good. "Good" leases are like cars, everyone will have different opinions based on their comfort level and past experiences.
If you cannot understand the legalese in a lease, you have two choices, get a good lawyer or tell the company you want a plainly written one. I would go with the first and work with a group if you need to share legal fees.
The website is still up! 12:25 PM Jan. 126 2012
Oh wow but even at that the Web site spells out they are far from being a drilling firm but rather lease marketers
Does any landman have any integrity? Their job is to acquire leases - whatever it takes.
I dont know what all the fuss is all about? you either get paid a huge sum or you get released. I wish I had that opportunity.
Just curious... Was there any type of engagement letter signed with ILG & have they filed the actual lease with your county recorder? If I am not mistaken (and I am by NO means legal counsel) it seems that I remember hearing that Ohio is a first to file state. So if someone from the ILG group was to sign a contract/Lease with a different company (given that there was nothing in writing binding them from doing so) & that company was to file the lease prior to ILG filing theirs, then the new company would be the valid holder of the lease. As I said, I do NOT have any legal background, this is just something I seem to remember hearing discussed & thought perhaps someone in the ILG group may have contact with someone with actual Legal background that could check into this. I do not see how ILG could have actually filed the Leases with the recorders office if nobody has been paid & actually have it stand as a valid contract/lease... All just my opinion, but I would consider checking into it if I was in a similar situation...
Well cobra I do understand your concern. I have heard from a friend who has signed with ILG that there is a coal mine permitted in the Switzerland area, but others west have been paid. I feel for your situation. My family signed with a slick talking landman and signed for a fraction 2 years ago on a 2 page very oil company favored lease.....but I wish us the best of luck....
Did you settle with ILG ? Wish I would read this before I signed .
Might you have posted it in another topic?
So, the landman is also the notary?