Having been offered a top lease for what appears to be a low amount from reading the discussions in the Grady County Mineral Group, I am curious to know what price range for the bonus and royalty interest is reasonable based on current activity in the area for a three year lease. Also, cold someone explain what wording would be used in requiring a depth clause and what would be a reasonable limit on shut in time in the lease. With a little over two weeks until the present lease expires, would it be prudent to wait until it does expire before signing?
Don't forget to ask for get a "No Deductions Clause". In the long run it will be worth much more than any bonus money you get. Click the image below to make it bigger.
About the best Oil & Gas Lease Addendum I have seen:
The very important wording at the top of the "Oil and Gas Lease Addendum" reads, "The Following provisions of this Addendum are hereby made a part of the foregoing Oil and Gas Lease (the "Lease"), and to the extent of any conflict with the terms and conditions of the Lease and this Addendum, the terms and conditions of this Addendum are controlling. As to an OIL AND GAS LEASE dated the ____ day of ______, 20__ between your name here and company name here.
Thank you, Don. This was exactly the information I was looking for. My next question is (remembering the old saying that he who acts as his own attorney, has a fool for a client ) should I have an attorney draw this up or can I present these clauses to the lessee for inclusion?
You do not need an attorney, you need a typist. If you are comfortable with your typing skills, you can do this yourself.
In the body of the lease below the granting clause and the legal description add language noting the attached exhibit. Use "See Exhibit A" , or more the more formal, "See Exhibit "A" attached hereto and made a part hereof"
Allow for a 1 inch top margin if you are using word. I generally like to print to PDF to review the document prior to printing on paper as some printers seem to automatically adjust margins at the printer.
Curious what the offer was and from which company. We recently did a top lease of 230 NMAS in 21 5N 7W for $2,200, only for deeper depths including the Woodford.