We’re negotiating a lease of our farm that is half a section and over a mile from the nearest producing well so it would be a wildcat. I’d like to include an anti-dilution provision so we don’t end up with a well drilled on our property and, because of the horizontal line placement, we receive no royalty. But, I have a couple of questions:
Given it being a wildcat, is it likely we can include such a rider?
If we were to include an anti-dilution provision, what kind of provision would you suggest?
It would be more useful if you would include the state and county and post there and give a general location. Rules on drainage vary from state to state. If you own 100% of the minerals and surface then you have certain rights but if your minerals are less than 100%, then the mineral estate is dominant over the surface estate and you have to take that into account. Getting a good oil & gas attorney licensed in your state could be a good investment in getting exactly what you want.