$1.00 consideration per parcel ?

can anyone explain to me what the $1.00 consideration is when we signed our lease. as we understood it, was we were to get $1.00 when we signed out lease, that way the G&O companie could research our title. it says $1.00 upon lease execution,and $*,***.** per lease hold acre to be pais 90 business days later.. we have recieved nothing. is this lese valid?  thanks,Twitch

 

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Replies to This Discussion

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 30, 2011 at 5:19pm
Yes, it's valid. It's old language that is still used in the legal profession. Deeds often say something like "For $1 and other good and valuable considerations..."  It's just a way to keep the price between the company and the landowner.
Permalink Reply by michael j belaj on October 2, 2011 at 2:37am
The $1.00 makes it a legal binding agreement the lease will all so state for valuable consideration that is were the bonus money comes in. The lease will all so have a clause written notification 30 day to terminate that is in there so if they are late they have 30 days after notification for termination. I am suprised when some one signes a lease for 5 + years for several thousand of dollars and they dont check out the people they deal with or they lease property that they dont own the mineral rights on and they act suprised when they dont receive payment. This is a tough business deal with people that know the oil and gas industry and have worked in it long enouph to understand it inside and out. If they lie to you tell them to take a walk. If it sounds like b/s it is. Mike

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