As it seems with a lot of people lately, I've recently received a lease offer on mineral rights I had no idea I had inherited. I've read thru so much information on the web as this forum advises, I'm more confused than when I started.
Diamond Resources seems to be a legitimate landman and I understand the lease may be sold.
Very small acreage, 1.43 ac of 680 ac in Weld Co Colorado. Offer is for paid up 5 yr lease of $750/ac with 3/16 royalties. That part sounds fair,I guess, but the small print on the lease is written in a legalese which I can't afford to have translated.
One discussion group says definitely delete clause that warrants and agrees to defend the title.
By nature I 'd like to negotiate the lease, but being clueless, it's hard to do. Who of you could or would simplify or share their experience??
Where is your property located in Weld County as in Township/Range?
You might take a look at my handout that is linked in the Kiowa County pages. I also have an article in the Bent County Democrat that you may find helpful.
DISCLAIMER: The information in this posting is for general information purposes only. This posting should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this posting
Thanks for the reply, Jenna. The information on my lease....Township 7 North, Range 62 of the 6th PM, Sec 11 N1/2NE1/4, Section 12 NE1/4, W12W1/2, NE1/4SW1/4, Section 13 S1/2,,,,,,,,,,,might as well be Greek to me. I did read your articles and understand the basics. With my time constraints it's really difficult to do all the research and was hoping to get personal experience info from other clueless folks who have gotten similar leases - yes, free advice!!
I am no expert but I would not jump into anything to quickly. You can get alot of good info on this site from some knowledgeable people. I am not one of them and can only tell you about my experiences. I can tell you that I have approx 1400 acres of mineral rights that I leased out and about half of them are in the same Township and range as yours are in. I recntly read that the first test well drilled on one of my sections in this area is producing oil which leads me to believe that there may be alot more drilling coming up. Good news!! Is this the only company that has contacted you and how long ago did they contact you? Was this their first offer? We were contacted by one company and were talking to them and shortly thereafter several companies began contacting us. Having other companies interested gave us bargaining power. From the info you provided, It appears you have mineral rights in three diiferent sections. My advice to you is take your time, ask lots of questions, and do your research. Good luck.
Just what I needed to hear! This is the only company that has contacted me and it was the first offer. It was only a few weeks ago. I was probably hard to find. My father died 30 years ago and I've changed my name 3 times. Is this the same company that contacted you? I'll hold out and keep researching. Thanks so much.
Barry Songer said:
I am no expert but I would not jump into anything to quickly. You can get alot of good info on this site from some knowledgeable people. I am not one of them and can only tell you about my experiences. I can tell you that I have approx 1400 acres of mineral rights that I leased out and about half of them are in the same Township and range as yours are in. I recntly read that the first test well drilled on one of my sections in this area is producing oil which leads me to believe that there may be alot more drilling coming up. Good news!! Is this the only company that has contacted you and how long ago did they contact you? Was this their first offer? We were contacted by one company and were talking to them and shortly thereafter several companies began contacting us. Having other companies interested gave us bargaining power. From the info you provided, It appears you have mineral rights in three diiferent sections. My advice to you is take your time, ask lots of questions, and do your research. Good luck.
The wells referenced in this article are quite close the property you described above: Continental Resources Working On Niobrara Test Wells
DISCLAIMER: The information in this posting is for general information purposes only. This posting should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this posting
thanks for the info. now, to figure out what to do with it!
Jenna H. Keller said:
The wells referenced in this article are quite close the property you described above: Continental Resources Working On Niobrara Test Wells
DISCLAIMER: The information in this posting is for general information purposes only. This posting should not be substituted for legal advice and should not be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or reading this article does not constitute, an attorney-client relationship. You are encouraged to contact an attorney for legal advice concerning the information provided in this posting
Hi Jennifer,
I'd be interested to visit with you if you haven't resolved the situation. I'm a landman working in Weld County and I might be able to help. Let me know and I can send you my contact info. Best, Will
Thank you, but have resolved the situation..so far.
Hi Jennifer, I know I'm a bit late, but I just found this site last week. I don't know what your lease with Diamond Resources says, but my lease in N.D. is with Diamond Resourses. It was a 5 year lease also and was sold shortly after we signed. I didn't have any trouble with the company.
Jennifer Jones said:
Thank you, but have resolved the situation..so far.