I recently asked Noble energy for a No Production Cost clause to be added to my lease. Below is what the landman responded with...
That is the #1 asked clause to be added to our leases. If I could have squeezed it into your agreement I would have. That used to be a major bargaining chip we would have in our arsenal but it is not approved by Noble. They will absolutely not budge with this issue and I have constantly hammered the point that it would be very helpful if we had the leeway to use. You guys are honestly getting the best deal I can provide, again I don't make commission but I've given you guys the best I can.
What do you think? I received in the lease $2500.00 per acre and 17% royalty.
I recommend that you don't take the lease. If they really want your minerals, they'll come back to you eventually. But you'll have to make the decision for yourself. Some factors are: just how badly do you need the money right now (or in the near future), how much property do you hold (large tracts are more interesting to the company), how likely are they to drill (I'm not sure whether Noble is speculating or drilling, sorry), how much longer you think you'll be alive (if you're 90-something, the next offer may not come in your lifetime), and, well, whatever else you and others on this forum can think of.
If you want to call me and discuss, send me a friend request and we can bounce ideas around. Your situation isn't going to be exactly the same as anybody else's.
I won't charge you for a preliminary consultation. (I'm a lawyer). I'm a good guy like that (pats self on back for that and liberal use of parentheses in a forum post).
Kyle, I responded to Tonya over on the Tyler Co. site. I think we both are in the same zone on her post. The part I think that is important is if you can be patient you most likely will get a better lease. The companies throw the figures and paperwork at you before you can get your breath. Remember one thing Tonya, we are talking about mineral rights real estate, so it's very important to get the best lease for you and your family. Thought for the day: If you ask the company to sign paperwork that would be of benefit to you, how long would it take them to get back to you?? Have a good holiday and remember all of our troops past and present. DT, (US Army 69/70)
Thanks Kyle and DT. I am remembering the troops....my son is an Army Ranger and I could not be more proud! Thank you, DT for your service.
This has been a process. One heir was hesitant to sign. According to landman, Noble has three pads set and are ready to drill. My interest is not large. 70 acres and I own the right in two acres. I see on here all the time to ask for that clause but I have not read anywhere that a company has the policy of not offering the No Production Cost clause. I have signed other leases with Antero. This is my first go around with NOble.