Use Professionals! A Word to the Wise Is Sufficient
I encourage folks to use professionals when signing any document relative to royalties or minerals.
The industry has a reputation for having shysters, crooks and unscrupulous folks taking advantage of people.
I’ve seen it in the TMS.
For example, I have a friend with several hundred acres of minerals. He had someone nearly 10 years ago to come by and flash some money in his face for a 5 year lease. He had inherited the property and owned it for several years without anyone inquiring about a lease.
So, he considered the money manna from heaven. He signed the document put in front of his face, took the money and was happy….until a well was drilled under 30 acres of his property.
The well was among the earliest drilled in the TMS and is still producing today, though it never has been a good well. But that's still good news, right? Not exactly.
The remaining 500+ acres is now tied up because he didn’t go to see an attorney. Any reasonably knowledgeable attorney would have advised him to change the lease so that this issue wouldn’t have occurred.
By not spending $200 or so 10 years ago, my friend has lost the opportunity to lease his nonproducing property again for well over $150,000 and to get a higher royalty rate off of future production to boot.
So, you’re thinking, "Yeah…well those sort of things aren’t happening today. These folks know we’re wise to them now. Right?"
You are wrong, my friend.
Two weeks ago a gentleman showed up and verbally offered a friend of mine a fair price with reasonable terms for his minerals. My friend agreed with a handshake, but told the gentleman he wanted the lease document reviewed by an attorney before signing. The man offering the deal refused. My friend thanked the shyster…ummm….reluctant lessee for his time and went on about his business.
I ask you. Why would someone honest leasing minerals in the area care if an attorney reviewed the document? Only one reason. The terms in the lease aren’t fair to the mineral owner and he knew the attorney would catch it.
I assure you the professionals at Arpent Energy, LLC won't object to your having your own counsel review any paperwork prepared before signing documents prepared for the MINERALS MARKETPLACE.
We wouldn't have associated with them if we thought otherwise.
Again, though, it is only smart to take any documents presented to you regarding sell or lease of your mineral and royalties to an attorney before signing.
A word to the wise should be sufficient.