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Energy Industry (Oil & Gas)/"$10.00 and other good and valuable consideration" meaning?


I received a cash offer from a company named Cascade Energy, L.P. aka Cascade Acquisition partners, L.P. out of Dallas, TX.  We accepted their offer to purchase the mineral rights on our property and she sent me an Assignment and Bill of Sale to sign and return to her.  The letter states a purchase price of $7500 but the bill of sale states $10.00 and other valuable consideration paid by Cascade Acquisition Partners, L.P.  I am scared to sign this Bill of Sale, my fear is they will send me a check for $10.00 and own my mineral rights.  I have copies of all email correspondence with her and the letter and Bill of Sale which I can email to you for your review.  What are your thoughts and suggestions on this?

It's fairly common, almost universal really, for mineral deeds to state only a "token" payment of $10.00, $100.00 etc. You can call any county clerk and they will likely tell you it's a common practice as well. I wouldn't worry about it unless you have issues with the reputation of the buyer. You could probably ask them to send you a cover letter stating the actual amount they are paying you if they haven't already provided it in an email. That way you'd have something in writing from them stating the actual price they plan to pay you.

At the Mineral Hub, we often act as the "middle man" for owners who have listed their mineral rights for sale on our website. Once we find them a suitable buyer at a price they're happy with, we will keep their signed deed safely in our office until we receive payment from the buyer for the full amount. This ensures the seller will receive the amount agreed upon even if the deed itself states "$10.00" or some other token amount. We've had some of our clients who are selling ask us the same questions you are actually, so you are certainly not alone in wondering about the "token" payment commonly found on mineral deeds.

Keeping the signed deed in our possession until we receive the buyer's check also encourages the buyer to close within a reasonable time. If you send a signed deed off to a buyer prior to receiving a check from them you run the risk that they will take their sweet time to close the deal and get you paid, or worse yet simply change their mind after tying up your mineral rights for several months. Just food for thought.

Hope this helps you out.
Frederick M. "Mick" Scott CMM, RPL
The Mineral Hub  

Energy Industry (Oil & Gas)

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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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