I've got two proposed leases agreements coming

[Donna_Shepherd]

Aside from the lease bonus & royalty percentage, how can I tell which lease to sign? Are there some red flags to be aware of when signing a lease? Is one company better than another? Or does that even matter? Don’t the leasing agents sell the lease to an operator? How does this work? I’m 74 & the amount of the lease bonus might be a higher priority to me than the royalty percentage. I may not live to see a well drilled. Asking for opinions.

[M_Barnes]

We can help you better if you tell which state, county, and section, township and range or abstract. There are some big red flags to watch out for, but they vary by state.

[Donna_Shepherd]

Sorry, I thought I was posting on the Dawson County, TX section. Here’s the legal descriptions of the mineral rights I own in Dawson Cty:

Sec. 30, Blk 33, T-5-N, T&P Survey, Abst.610 Sec. 31, Blk 33, T-5-N, T&P Survey, Abst. 30 Sec 42, Blk 33, T-5-N, T&P Survey, Abst. 609

Thanks for your help.

[M_Barnes]

I moved it over for you. Someone local may be able to help you.

[AJ11]

This link http://gis.rrc.texas.gov/GISViewer/index.html?api=11533035 will open the Texas RRC GIS map viewer on an oil well in Abstract 30 in Dawson county. Attached is a map with blue circles on your sections. Given the north-south orientation of the leasing, I would suspect that horizontal drilling might be a consideration. If you own tens or hundreds of net mineral acres you need to hire an oil and gas attorney. This is even more important if you own surface land in addition to the minerals. Even if you only own a few acres, it would, in my opinion, be a best practice to get an attorney to look at the proposed lease. An oil and gas lease, again, in my opinion, can be a minefield for the uninitiated, inexpert mineral owner to try to navigate. One word or phrase in the lessee’s benefit could cost a lessor lots of money. How much money were you offered per acre? Has anyone else in the sections leased or been approached. It is unclear if two different companies have each offered to lease you, or whether one land company has sent you two leases or two proposals. Repeating, get an attorney if you can justify the expense. If you have two acres that might be difficult, if you have two hundred, it is the proverbial “no brainer” imo.