PREDATORY mineral-buying practices: An unfortunate example

[@jameswhite1319]

Gee thanks for sharing I have the same problem with Exxon in Arkansas and Louisiana! Had to get a lawyer at 450 a hour! Exxon. Is so hard to deal with ! Thanks James

[@jmricks]

Wow! Thank you for the warning. That's ridiculous.

[@LisaLloydTeam]

Wow, thank you for showcasing this issue

[@jenniemason8680]

Thats so sad Tracy.

[@tylerroberts2996]

Great Warning video!

[@Tom-fo5ce]

Hi. A quick point: the Grantee is a Wyoming LLC. That is a red flag. WY has the most protections for the LLC owner in the US. It is used by scammers and should give you a hint about whether it's a good or bad actor.

[@PecanTreeOG]

Wow! I didn’t know that about Wyoming but knew it was odd it was a WY LLC so I intentionally left that un-redacted.

[@PecanTreeOG]

I checked out the About Us folks listed on their website and most have less than 3 years in the industry and/or are based in another country. But gee! They have an A+ BBB score! (speaking of scams 🙄…)

[@Tom-fo5ce]

@@PecanTreeOG Quick suggestion if she really got hurt: many times a scammer using a WY LLC will fail to authorize the WY LLC to do business in TX, therefore any transaction the WY entity does is invalid. You can see if they did in TX Sec of State. If not, she has a very winnable and inexpensive lawsuit. Any judge who sees the WY entity was not authorized to do business in TX (they call it "a foreign company" authorization to do business in TX) will automatically rule in her favor and perhaps cancel the deed.

[@PecanTreeOG]

@@Tom-fo5ce , very interesting. I did a quick search of the SoS listing and didn't see their name. I might not be looking in the right place, but I did email the family and let them know of all that happened and that this *might* be an option. Hard to say how much of an "ouch" it was without her contacting Permian Resources regarding how much is in suspense, and it'd have to be weighed against her likely losing eligibility, but I know SO many great buyers who'd love active Ward County acreage who could at least provide a clean and fair transaction if they need the money, but I'm sure it'd be an uphill battle initially to get the deeds dismissed.

[@Tom-fo5ce]

@@PecanTreeOG Respectfully, I disagree.Like all good Americans, I have my gripes about our legal system, but in this case it would be a simple, inexpensive matter for a small business attorney in her town with some trial experience to check if they are approved. If not, the atty could get a very simple case before a judge. Once the judge asks them if their LLC was authorized to do business in TX at the time of the deal and the answer is no, to my limited knowledge he would bang his gavel and rule in her favor (I assume unwinding the deed)

[@AudreyBailey-b3i]

What can hold a lease during the primary term without production? Can a permit filed a month before the end of a primary term hold a lease?

[@PecanTreeOG]

@@AudreyBailey-b3i during the primary term, usually there are limited things required to hold the lease. The primary term is there to give the lessee time to evaluate, plan, and schedule drilling of the well(s). The lease itself should say what is required to extend the lease beyond the primary term, but usually it requires a well to be at least in the process of being drilled (“spud”). I’ve not seen a permit extend a lease beyond the primary term by itself, but the permit might mean they are starting to drill since there’s usually a delay in data and filings.

[@Palatablepets]

So sad.

[@ronaldschwigel-kz4ot]

a just got a lease offer ?

[@PecanTreeOG]

Let me know if you have any questions 👍

[@HeyImKri]

OMG, I am hot with you! Great video!

[@PecanTreeOG]

Right?!?! Even just editing the video I kept getting fired up all over again, hah. I've seen this before but never so many stacked issues with such a vulnerable owner.

[@OilMan-sp7zs]

Not a good thing for the mineral/royalty Community.

[@PecanTreeOG]

Agreed.