Is there a concern that Landman should be bonded or insured? I work for a Foundation with mineral rights in the Bakken and in the past I have not worried about this when negotiating leases. I am of the belief since the Landman works for the exploration company and the payment comes from the exploration company I should not have a concern if the Landman is bonded.
Any opinions out there?
It is best to ask if the Landman is a Certified Petroleum Landman. That is the highest level of expertise and requires extensive training and an agreement to abide by ethics standards. If they are not, then ask for someone from their firm that is.
Many landman no longer work directly for an oil company. Those days are mostly over. Most landmen work for land companies that are hired by an oil company or are independent contractors so the link to the actual oil company is no longer there.
I don't believe it would matter if the landman is bonded. It is business and in business as in boxing, the best advise is to protect yourself at all times. Make sure you get what you need in the lease and your responsibility to say no if you do not get what you need in the lease. Always do business on paper by mail. Promises on the phone mean little if you are not recording it. You can not expect the other side to play fair, it's your responsibility to protect yourself.