I have an offer from a land broker but no contract yet. I would like to suggest to whoever is going to send a contract that it should hold me harmless for maintenance, transport, fees or fines they encounter. I have heard that use of brokers absolves the exploration companies from these costs by attaching royalties. Can someone suggest options.
where are you? who is broker? who are they representing? what are terms of offer? readers of this board would be very interested in this type of background.
Next, I would strongly recommend working with an experienced gas/oil attorney.
Wilson
The location is in Kingfisher County. The "broker" is in Blanchard OK. I prefer not to list specifics but the royalty is less than 1/4 and bonus is under $500/A. We had delt directly with the exploration company in the past so when the broker appeared in the picture it was a surprise. Is this now the standard way to build a demilitarized zone around themselves insofar as costs and law suits?
Ron,
Please, don't think I'm being rude, but I would think your posts should include your legal description with the price and terms being offered, so that others in your section or adjacent sections can see what the exploration companies are offering. If everyone would do this it may give us more of an upper edge over the exploration companies! Maybe I'm wrong, but when we don't disclose the particulars openly with each other as mineral owners we are giving the exploration companies what they want, and therefore, they can pay us lessor amounts while keeping their bottom line fat!
Again, I'm not trying to rude and maybe I look at things differently, but I'm just surprised that people seem to be so tight lipped about this and by doing so, they end up cheating not only others, but themselves too!
Kay,
I don't think your being rude but Ron gave the information he was comfortable giving. Not sure if he has posted before but as a newcomer to this forum and a new possible lessee myself. I find it interesting to see what people are offered all overt the United States. While the bonus money is good and royalty amts better I want to protect my self and family members from company's and their represenatives from bad business practices. I have had my knowlege increase alot. People always focus on bonus money and royalties but I want to see the whole picture, shut in clauses, pugh clauses, warranty clauses, getting oil paid at market price instead of pipeline without alot of costs. I would rather a small amt at the beginning than having small royalty check in the end. As I stated I am new to this and have no signed lease yet I hope to parlay what knowlege I have now into a significant amt in the end.
Kaye, Native American is basically correct in his assumptions In regard to the information I am currently comfortable in releasing but agree with UR concerns also. I have not dispensed more info as I am still considering my negotiation position. So far no contract has even been sent.
Native American, how many mineral acres do you have for lease? The more acreage, the higher your bargaining power. I highly recommend that you hire a professional mineral manager or oil and gas lawyer to assist you. An oil and gas lease is not a do-it-yourself project as there are way too many pitfalls no matter how much we educate ourselves. Buddy Cotten, a regular contributor to this forum, is a professional mineral manager whom I highly recommend.
We only have around 80 acres. I would love to hire Mr. Cotton but at this time it is not an option for our family. We will trust God and what knowlege we have and we will keep learning until we are comfortable with offer or offers. We have friends and other family members who have been thru the leasing process before. But this forum is an excellant place to gain knowledge.
6th Generation Texan said:
Native American, how many mineral acres do you have for lease? The more acreage, the higher your bargaining power. I highly recommend that you hire a professional mineral manager or oil and gas lawyer to assist you. An oil and gas lease is not a do-it-yourself project as there are way too many pitfalls no matter how much we educate ourselves. Buddy Cotten, a regular contributor to this forum, is a professional mineral manager whom I highly recommend.
Hello again and thanx for the above information. I am a geologist but not in O&G. The bruhaha in Pennsylvania has made me wonder:
1) how can I tell from the CCC O&G logs if a well has gone slant/horizontal?
2) if a horizontal drill passes thru ones property but gas/oil layer not hydro-fractured but is on the nearby property and finds O/G there, does this entitle me to royalties if several wells drilled from one site this way and the product is comingled? My point is no testing on my property does not mean no product but seepage, at least, is probably part of product.
3) can royalty owner be liable for earthquake damage cause by hydro-fracturing? In Colorado the waste fluids pumped into deep wells was shown to cause the earthquakes and was litigated.
Please don't take this as my being rude, but have you spoken to Mr. Cotten regarding his fee? It is a small price to pay to keep from leaving money on the table to the oil company and making sure your lease agreement protects you. My family and I have been down the path of lengthy and expensive litigation in the past with an oil and gas company and it is a very unpleasant experience.
Native American said:
We only have around 80 acres. I would love to hire Mr. Cotton but at this time it is not an option for our family. We will trust God and what knowlege we have and we will keep learning until we are comfortable with offer or offers. We have friends and other family members who have been thru the leasing process before. But this forum is an excellant place to gain knowledge.
6th Generation Texan said:
Native American, how many mineral acres do you have for lease? The more acreage, the higher your bargaining power. I highly recommend that you hire a professional mineral manager or oil and gas lawyer to assist you. An oil and gas lease is not a do-it-yourself project as there are way too many pitfalls no matter how much we educate ourselves. Buddy Cotten, a regular contributor to this forum, is a professional mineral manager whom I highly recommend.
I have a suggestion. Whatever you do, do not sign any type of lease or legal paper from any oil company. You might sign with one oil company and end up having four or five oil companies drilling wells on your property, and you might only know about one oil company. They will tell you anything and give you chump change. Whatever they give you will not be worth having a well on your property, two wastewater ponds per well, the pipes, the trucks, and being a tenant on your own property. I have had experience since 1957. So unless you just want to be paid $50 per year for one well or $50-$100 per well per month, even if you manage to hit the jackpot and obtain $300 per month, it will still not be worth the inconveniences listed above. I am still a landowner and leaser. The oil company will not leave until they suck the land dry. I have real life experience.
Yes, and we always called them landmen. The oil companies pay many lawyers and lobbyists to get their way on everything, and as far as legal rights, lessors and landowners have none. I have experience with this because I sued Dominion Exploration and lost. The West Virginia Supreme Court told me that lessors have no legal rights because lessors do not own the minerals. Once a lease is signed, you are merely owed a royalty. Your legal rights are gone according to the West Virginia Supreme Court; only the oil companies own minerals, and only they have mineral rights. Believe me, I found out the hard way. You can read Marie Gassaway v. Dominion. My case was settled this past October 2011.
Ron said:
The location is in Kingfisher County. The "broker" is in Blanchard OK. I prefer not to list specifics but the royalty is less than 1/4 and bonus is under $500/A. We had delt directly with the exploration company in the past so when the broker appeared in the picture it was a surprise. Is this now the standard way to build a demilitarized zone around themselves insofar as costs and law suits?
Marie, I sympathize with you. I have lately taken to sticking the fact that when people lease they no longer own the gas/oil into my posts where appropriate. A lease does not necessarily provide any safety, it is merely the declaration that you are giving up your right to the minerals. If people were aware that they could be in the situation of essentially selling their minerals for the value of the lease bonus, and that it might take years of scratching and clawing to get their royalty, they wouldn't be so quick to lease their minerals for such paltry sums, or they would insist on their own lease forms that make the payment of royalty at a set time after first sales a condition of the lease continuing. But people generally are not aware. Mostly it's the people who have suffered disastrous consequences, who know how bad signing a lease could be. Thank you Marie for trying to raise awareness of this issue. I think your state should do more to protect you, but I think that about most states. I wish you all the best in the future.
Thanks for being sympathetic and replying. It's nice to know that somebody understands.
r w kennedy said:
Marie, I sympathize with you. I have lately taken to sticking the fact that when people lease they no longer own the gas/oil into my posts where appropriate. A lease does not necessarily provide any safety, it is merely the declaration that you are giving up your right to the minerals. If people were aware that they could be in the situation of essentially selling their minerals for the value of the lease bonus, and that it might take years of scratching and clawing to get their royalty, they wouldn't be so quick to lease their minerals for such paltry sums, or they would insist on their own lease forms that make the payment of royalty at a set time after first sales a condition of the lease continuing. But people generally are not aware. Mostly it's the people who have suffered disastrous consequences, who know how bad signing a lease could be. Thank you Marie for trying to raise awareness of this issue. I think your state should do more to protect you, but I think that about most states. I wish you all the best in the future.
Dear Ron,
" I have heard that use of brokers absolves the exploration companies from these costs by attaching royalties"
I have never heard of that before. Who told you that? Long story short, one simple clause would solve the issue.