BlueStar Land Services

So you received a letter? It’s probably either an offer to lease or a proposal letter or a request for curative documentation.

• If it is an offer to lease, please review it, making sure it is consistent with your records, and, if acceptable return, it to our office as soon as possible so we can send you a lease.
• If it is a proposal letter it should be returned quickly as a pooling is likely to follow.  Note that if your proposal letter says “you are receiving this letter for curative reasons only” then you probably don’t actually own an interest in the unit but are a “stranger” who must nonetheless be notified prior to commencement of pooling operations.
• Requests for curative documents are our efforts to cure problems in the record title for the unit.  In most cases it is a benefit to you which costs you no money.  If you are willing and able, assisting us with this process will result in long term benefits.
  

 What does curative mean?

•  Occasionally, flaws will develop in the record, which affect mineral owner’s title.  We have found that the easiest and most convenient time to solve these problems is when we are in the leasing process.  Additionally, we believe that proactively solving these problems rather than leaving them for someone else to solve is the best policy.  The best part is that solving them now means that in the future you are unlikely to be asked to solve them again.

How does this process work?

• We lease your interest (or pool it)
• Our client drills a well
• Hopefully it is a commercial well
• You will execute a division order
• Our client will begin sending you a royalty check on a periodic basis

How to execute an oil and gas lease

• Review the terms and verify that they match what you selected
• Take your lease to a notary public and execute it in their presence.  Most banks provide complimentary notary services.
• Fill in the form W-9 which you received with the lease.  Please note that without this form, we are required to withhold a larger amount for taxes than if we have the form.
• Return your executed oil and gas lease and the W-9 along with any curative documentation which has been requested as soon as possible.  Most of our clients provide payment by check, although some still use bank drafting on request.  In most cases, we are able to forward your bonus check to you within a week to ten days of receiving a properly executed lease and W-9.

Why are you being contacted?

• You are being contacted usually because our research (or our title attorney’s research) has determined that you own an interest in the unit (or that you are a stranger that may be claiming an interest in the unit).  We are generally contacting you so that we can lease your interest.  Once we have been able to lease enough interest in the unit, our client then usually follows up by drilling a well in the unit.  If the well turns out to be productive and commercial then you will begin receiving a royalty from the well.  This royalty will continue to be distributed as long as the well produces and you own the interest.