Crude (oil) Crud

[whiteranch1]

What is the name of your state (only U.S. law)? Oklahoma, Osage Co. Mineral rights owned by Osage Indians, property owned by us.

First a little background:
* husband and self own 50 acres in osage co, OK
* wells inactive since 1994-Osage nation terminated lease due to inactivity and initially agreed to and begun to cap wells- we have a letter from the Osage nation agreeing to cap the wells
* Bureau of Indian Affairs determined there is nothing salvageable from legacy infrastructure
* After 14 years of inactivity we feel the land has returned to "natural state" as Blue Stem is present
* Have existing contract of sale for $95,000 to a third party

Here are our dilemmas:

The oil company entered our property with a bull dozer and began clearing to replace an old abandoned down electrical line without securing an active lease agreement with the BIA for our 50 acres. The VP of the corporation admitted in front of 10 individuals that he commited an illegal trespass. He claims it was in error that he thought someone else owned the property, but the neighbors have advised us that they in fact told him the property belonged to us. He never notified us of any intent even though the real estate sign with contact information was on the property.

The proposed buyer of the property discovered the damage and asked the oil co to sign a surface rights damage agreement for future activity (all parties agreed to forgive the trespass if he was willing to sign the document) before he was willing to complete the real estate transaction. The oil co wants to operate on a very generic version of a surface agreement and a handshake mentality. This doesn't sit well with the land buyer as he is very experienced with oil issues as he works for Conoco Phillips. The buyer is unwilling to buy the property without securing this agreement.

Here are our questions:

Is the oil company required to provide a surface rights agreement document?

Who determines what document is used?

Is he liable for our "loss of sale" due to his illegal trespass and/or refusal to secure an agreement with our potential buyer?

I emailed the oil co and demanded they cease all work activities until we and our legal advisers:

See a valid lease agreement
Agree to a surface use agreement for future activities
Be compensated for damages due to illegal trespass

I have consulted an oil lease attorney and am awaiting a callback.

Thank you

[justalayman]

Is the oil company required to provide a surface rights agreement document?

no

Who determines what document is used?

it would have to be an agreement by all parties concerned. There is nothing mandatory here so any part could refuse to enter into any agreement if they did agree to any document presented.

Is he liable for our "loss of sale" due to his illegal trespass and/or refusal to secure an agreement with our potential buyer?

No

the bigger question is; does the buyer have a right to demand anything now that a sales agreement is apparently in place. He is the party that would be breaching his contract and who you should be concerned with. Hope he laid down a mighty deposit.

[JETX]

Originally Posted by whiteranch1

I have consulted an oil lease attorney and am awaiting a callback.

You have a VERY complex legal issue that will require an extensive review of the documents and facts. Wait for the attorney.