We received a MEMORANDUM OF NON-SURFACE USE OIL AND GAS LEASE from MCM Exploration for property in Midland County. Is someone able to tell us if it is standard or if there is anything we need to ask them to amend?
Bonus amount: $1,404.00 ($12,000 per NMA X .117=$1,404.00) (increase to $13,500 if we sign today)
Royalty: 25%
Term: 3 years, with opportunity to extend to 2
Should there be an interest rate if they don’t pay on time? Should we bear the financial burden of a survey if they request it? Should we have a lawyer review? If so, any recs? Thank you!
You should have received the full oil and gas lease, not just a memorandum. The lease will have all the terms and conditions. The memorandum is often filed to hide the terms and to put others on notice that there is an oil and gas lease in the hands of the lessor and lessee. You need to ignore this high-pressure tactic so that you do not sign a document which is unfavorable to you. Best to have an oil and gas attorney review. Be sure to keep a copy of any legal document you sign.
Agree with TennisDaze. Also, I would not agree to an extension of two more years. Rarely favorable to the mineral owner. Definitely get an attorney to review the entire lease as the terms may hold your family for decades.
Not sure I would call that a conflict of interest but akin to why would someone pay to negotiate against themselves? ALWiltz, very doubtful, but it never hurts to try.