The 2019 Texas legislature enacted a new Property Code Section 5.152 to protect mineral and royalty owners from a certain species of fraudulent transactions perpetrated on trusting and/or naïve and/or out of state mineral owners. Ethan Wood and I wrote about the scam when it made its way into the courthouse. How the scam worked The grifter, fronting for a company with a name similar to a reputable operator, would approach the owner with an oil and gas “lease” of minerals or royalty that were already subject to an existing lease. Except that the lease was actually the sale of the mineral or royalty interest at a bargain price. The scammers would then invoke arbitration provisions they had written into the conveyance, and relying on the confidential nature of the arbitration process, would stifle publicity of the inevitable dispute. Why were the grifters successful? Because the aforesaid trusting and/or naïve and/or out-of-state mineral owners didn’t read what they sign or don’t seek competent advise before signing. This is an age-old phenomenon and will always be with us. The fix That scourge was addressed by new Section 5.152 which provides, in summary,
Musical interlude Does politics today need a true libertarian? Fake Mineral Leases Thwarted by the Texas Legislature syndicated from https://888migrationservicesau.wordpress.com via Tumblr Fake Mineral Leases Thwarted by the Texas Legislature
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