Hey Froz, a bankin question.

[olevetonahill]

Back in the Middle of Nov. I received a Bank draft for almost 500 bucks
Took it to my bank and they said it would be up to 30 days before it cleared ,
Deposited it on 11-22 -10
Just before Christmas I emailed the company and axed them when it was gonna clear. They said 30 BANKING days. so it should be around the 3rd
well here it is the 6th and it still aint cleared my bank
Should I just wait a little longer? Raise hell at my bank? or RAISE ehll wit the company ?

If i had known it was gonna take this long Id made em send me a cashiers check before I signed.

[yermom]

what kind of shady people are you selling stuff to?

[olevetonahill]

what kind of shady people are you selling stuff to?

Mineral rights Leasing ,
Hell Ive owned em for 30 years er so and dint even know it .:cool:

[SicEmBaylor]

Mineral rights Leasing ,
Hell Ive owned em for 30 years er so and dint even know it .:cool:

My grandmother's leases were up for renewal last month. She was convinced they were low balling her (which they were), so she refused to lease. Instead of getting someone to negotiate on her behalf (or hell doing it herself) she just walked away. The crazy thing is, she needs the money.

Knowing her as I do, she'll wait until the price of oil drops again and THEN renew the leases.

[ouleaf]

Back in the Middle of Nov. I received a Bank draft for almost 500 bucks
Took it to my bank and they said it would be up to 30 days before it cleared ,
Deposited it on 11-22 -10
Just before Christmas I emailed the company and axed them when it was gonna clear. They said 30 BANKING days. so it should be around the 3rd
well here it is the 6th and it still aint cleared my bank
Should I just wait a little longer? Raise hell at my bank? or RAISE ehll wit the company ?

If i had known it was gonna take this long Id made em send me a cashiers check before I signed.

Hmmm. If they haven't paid it by now I'd start to make some noise. I'd check with your bank's collection department and they should be able to follow up with Oil/Gas company's bank to see if it has been returned or if they paid the draft or not.

When the Oil/Gas company's bank received the draft, they should have given the company a final date for where the item must either be paid or returned. It sounds like they are past the 30 banking days they mentioned though.

If they still haven't paid the item and they have a signed, executed lease with you, you might need to raise some hell and threaten them with legal action.

[olevetonahill]

Think Ill give my bank a call in the AM and then just go from there.
Thanks

[Penguin]

Just walk in the bank and hand the teller a note that explains the situation. I suggest it says "I need the money now. I'm about to go f'in crazy up in here. I don't want to hurt anybody."

[rekamrettuB]

Why would a bank draft take 30 days? Am I thinking of something different? We draft a couple renters’ accounts each month and they show up a day or two after initiation. We also pay a few physicians via draft from our account. It too takes 2 days from initiation.

[Frozen Sooner]

Why would a bank draft take 30 days? Am I thinking of something different? We draft a couple renters’ accounts each month and they show up a day or two after initiation. We also pay a few physicians via draft from our account. It too takes 2 days from initiation.

Oil and gas lease drafts aren't regular checks sometimes and have to be sent for collection.

[Sooner_Bob]

Why would a bank draft take 30 days?

Especially one for $500.

[rekamrettuB]

Oil and gas lease drafts aren't regular checks sometimes and have to be sent for collection.

Ahhhhh....

[Frozen Sooner]

Ahhhhh....

Well, don't quote me on that, but I seem to remember something about that. There's something weird about the way they clear through the Federal Reserve.

[SpankyNek]

Oil and gas lease drafts aren't regular checks sometimes and have to be sent for collection.

The electrical company I worked for would also run into this problem from time to time with scheduled draft payments from construction companies on builds. If it hasn't cleared, it is not a reflection on your bank, rather there are probably not funds sufficient in the account the draft was written on to process it....as has been mentioned, talk to the liaison that gave you the "check" for starters, or if it was mailed, call the company directly.

[Frozen Sooner]

The electrical company I worked for would also run into this problem from time to time with scheduled draft payments from construction companies on builds. If it hasn't cleared, it is not a reflection on your bank, rather there are probably not funds sufficient in the account the draft was written on to process it....as has been mentioned, talk to the liaison that gave you the "check" for starters, or if it was mailed, call the company directly.

Well, it's not really even that. Most banks are set up to process checks that clear through the Federal Reserve system: you can even see which Federal Reserve bank clears the check and sends it on for payment to the paying bank by looking at the first four numbers of the routing and transit number. The first two are what federal reserve district the paying bank is in, the second two are the federal reserve branch. The Fed is incredibly efficient clearing these checks anymore, and they're getting faster every day. Anymore, most checks are just converted to an electronic image and are presented to the bank of payment within 48 hours of deposit. Think about that-a draft deposited in Nome, AK could very well clear a bank in Key West, FL within 48 hours. Crazy, right? As a general rule, banks will give immediate or near-immediate credit on these instruments, because they're not THAT risky and there's not a lot of float. The bank gets paid or notified of nonpayment right away. Most of the hold times banks DO put on checks are relics of pre-Check 21 days and reflect the length of time that it took for a physical paper check to be presented-and those hold times are kind of silly for 95% of what gets presented.

However, if a draft clears outside of the Federal Reserve system, then the bank of first deposit will generally not give immediate credit on the check until they've been notified by the paying bank that it will be honored. Because they clear outside the Federal Reserve, it can take FOREVER for that notification to be received. For instance, the Canadian banking system is miserable. I've seen a check on the Bank of Montreal take six months to clear. Anyhow, like I said, IIRC, and I may not (It's been a couple years now since I was a banker and I haven't gotten around to taking Payment Systems) Oil and Gas Drafts aren't presented through the Fed.

[ouleaf]

Yeah, this isn't a Bank Draft or Official/Cashier's check. It's a collection draft. The advantage of them for Oil and Gas companies is it allows their representatives to essentially pay the Land Owner "on the spot." In other words they don't have to wait for an actual check from the Oil and Gas company to execute the lease. It also allows the Oil and Gas company an actual time frame to move any money around or wait until funds are available to pay the item.

You often also see collection drafts used alot in automobile sales, insurance, municipal bonds.

[olevetonahill]

Ok an Update
I emailed the agent , She said that they have/will mail a paper check to my bank and for me to check with the bank the 1st part of next week. She said she would check and see Just when it was mailed.

Seems like a great way to avoid paying something right away and then using the Money Interest free.
Oh well I wanted it for Christmas since it was " Found " money. But will go ahead and buy me a new Puter when it does get here

[OutlandTrophy]

mail them a copy of the signed lease, have them mail you a check, deposit check and mail original lease to them. You'll have a check within 3 days of you mailing thr copy.

[Chuck Bao]

My mom and I were discussing this same issue this morning. The letter with the lease contract and the draft check clearly said that we could either ask our bank to collect on the draft (which may take up to 30 days) or, if we wanted to avoid paying our bank the draft collection fee, we could request a regular check to be issued once the processing of the lease contract is completed (I guess also about 30 days).

I was just assuming that draft collection outside of the Federal Reserve (thanks Froze for explaining that) required someone at your bank to follow up and confirm the transfer of funds before crediting the account. So, the delay could be with your local bank. Or, I could be wrong.

My mom and I couldn't decide which option would be best.

Like you, Olevet, this was like "found" money. I have mine earmarked for booze to stay warm.

Seriously, I like that the oil companies in my area are leasing again.

[olevetonahill]

Best I can Figure Bro is this shat is like an Old "Purchase Order"

Ya get it Up front But you dont Get it till THEY release it

Mine aint much, But If I had it to do over . Id say Ok Yall want this signed Have CASH in hand and Ill sign then


The agent said they Honor thr Draft by sending a Paper check
**** em Send me a check NOW and ILL sign then
:rolleyes:

Like I said seems to me to be a way for em to Buy yer Sig NOW and pay up to 45 Days later

[OutlandTrophy]

don't let them dictate every detail of the deal. You have something they want, you have a say in how the deal goes down.

If you don't like the deal they are offering you can simply do nothing.

Just wait until the OCC mails you a letter about force pooling and then you can select the best option. They will give you three options, usually the highest bonus offered for that unit, the highest % for that unit and then one that is in the middle for both bonus and production.

I never ever sign a lease longer than 3 years and have been force pooled before. I got a better deal than they had been offering.

Put a depth clause in the lease so that minerals deeper than TVD +100' of planned well revert back to you and you can later lease your deeper minerals to someone else.

It's a business deal that is two sided, don't assume it's a one sided deal.

[olevetonahill]

Ok a Final Update.
The Bucks showed up in my account yesterday
53 day AFTER I executed the lease and Deposited the draft in my account . Oh and for the record the bank took their cut, Charged me 25 bucks for collecting it er sompun .

Any way Thats the deal . If anyone is doing a Lease now , Like some one said Talk to em , and negotiate, Dayum sure find out when yer gettin yer money, Dont know if ya can but if so try to get some kinda late payment clause er sompun in the deal .

I thot this little bit would make Christmas a little More for my Grand Kids , But oh well I spoil em anyway .
But like I said it was found money , Didnt even know I owned these rights till they contacted me.