Modern Day Oil and Gas Lease Form, User Guide, Explanation of Terms-special shale clauses

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Attached is a modern day oil and gas leasing form with special shale clauses, drafted with the mineral, royalty and land owner interest in mind. A replacement for the Oil Company biased Producers 88 form. Feel free to pass on to your advisor or lawyer. Also attached is a Lease-O-Meter, a method for giving your existing lease a report card to determine how friendly it is to the mineral and royalty owner.

LRW

OIL%20AND%20GAS%20LEASE%20MODEL%2007042012.docx

OIL%20AND%20GAS%20LEASE%20MODEL%20USER%20GUIDE%2007042012.docx

OIL%20AND%20GAS%20LEASE%20MODEL%2002042013%20-%20Explanation%20of%20terms.docx

Transfer%20Note.docx

LEASEOMETER%20V.%202%202012.docx

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Thanks for the information.

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Pretty well-written, but unfortunately I can't imagine any oil company agreeing to this unless the lease is for several thousand acres of very valuable minerals and they have no other choice.

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I am seriously considering using some of these ideas in a lease we are (trying) to negotiate. Thank you. We also bought the free hold owners association in Canada, their lease for 25 $ to use. Not sure how this is going to play out. I feel like we need an attorny.

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Dear Mr. Wright,

We should call you Mr. Right with your lease checklist - the Lease-O-Meter. My only comment after a brief read is that some clauses have more import than others, but that would take a well seasoned person to make those determinations.

This is a great step towards quantifying lease comparisons.

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Dear Andrew,

Much tougher forms are taken in Texas every day. Since Mr. Wright is a Texas attorney, this form is designed primarily for Texas minerals.

Obviously, if you have 10 divided acres, this does not work, but if you have 10 undivided acres in a 500 acre tract, you could get most if not all in. It is really not that tough.

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Buddy, that's good to hear.

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I really like your Lease-O-Meter. That's a handy checklist.

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Love the author's pen names. Les. R. Wright & Roy T. Ohner. Really? Very clever.

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Thank you for this VERY generous donation. Many would be surprised at what oil companies will accept. They may alter a clause or two, but if you come prepared with your own lease or an exceptional Addendum, they often accept ALL the conditions. I've been using an 8-page Addendum for several years now, and it hasn't been declined once. One major company, however, wanted to delete everything regarding accounting transparency. BIG. RED. FLAG. I ended up being non-participating and force pooled.