Leasing Mineral Rights for Dummies

All right. An objective analysis. You do not have a contract if you do not have the money. From what you described, Anadarko Petroleum has the benefit of knowing that they can lease your property for so much but do not have to spend their money any time soon to get that lease. They are tying up your property without cost to them nor benefit to you.

I am not a lawyer, but one certainly wouldn't put up with this situation in buying or selling a house.

See what Rosetta will offer, run the terms by a lawyer, or even just go to the Reeves County comment wall and someone with expertise will help you negotiate and review the lease terms

I still say, Melissa, if you returned the “letter of agreement” timely to Anadarko and they told you they could not lease the property in time, they are the ones who breached the “letter of agreement”. Telling you afterwards they would be in contact “soon” about a lease, is after the breach on their part. I think you are back to square one with the ability to commit to a new lease with anyone you choose. Just my two cents, but then I’m not a lawyer! Linton

I am so appreciative to all that responded. We have now verbally accepted an offer from Rosetta and they have "put the contract in the mail." I told the gentleman if I did not receive a contract within 5 working days I would begin to reconsider other offers. I got a $1000 p/acre better than Anadarko offered. Probably could have gotten more, but this negotiating business is new to me. However, with the help of some of you I AM learning. Thanks so much!

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Congratulations, Melissa, I’d say you’ve done a fine job! Now if you get the language in the lease that’s in your favor you’ll be batting 1,000! Happy 4th!! Linton

Melissa -- the real goal is to have wells drilled on your property. Rosetta is operating 5 rigs S of I-20 near Pecos, while Anadarko is running 2 rigs N of Orla... not a slap on Anadarko. Good Luck... sounds as though ya dun good on the bonus! Later -- Buzz