Is it common to use Form 88- (Prod. Pooling) (Paid -up) Oil And Gas Lease? What exactly does paid up mean?
Thanks!
By reading the fine print twice I answered my own question.
Jane, the reason it is called a Form 88 is that was a particular printing company a long time ago and that just happened to be the form number they were on when asked to print it. It means nothing! Also, it means that there are no rentals and the only bonus you get is the one that you get when you sign it.
That being said, do NOT sign it before you understand it. The lease form you will get from the oil company is NOT in your favor. However, many of the terms can be negotiated to get it into your favor, or at least something better than what they are offering. If you want me to walk you through it, add me as a friend and we can go offline and walk through each of the paragraphs. There are some things in there that do not help you and there are some particular things missing that you really need to add in an Exhibit A. If this is your first lease, get some help so that you will be in a position to get more royalty money in the long run. Royalties are often more important than the bonus.
Things must be heating up in northern Blaine County. I have now received a lease offer and buy offer.
Activity is heating up. Oil prices are starting to rise a bit, so good time to negotiate to get a better deal.