I've been contacted by a landman wanting to lease my mineral rights & offered a signing bonus & royalties. My question he is a landman. Not a oil & gas company??? Can landman do this?thank u.
He is likely a landman that works for or is working on behalf of an oil and gas company. That is how it is done.
M. Holmes, Thank you I didn't know for sure. Thank you for your help
Anyone can lease your minerals.
Before you sign any legal document, be sure to read and understand the terms. There is a lot of reference material on this website. Do not let the landman apply high pressure tactics to push you to sign before you make sure that all the terms are acceptable.
Corby,
Usually a land man will offer a low bonus, so make sure you are getting a good deal. If you have at least 160 A minerals, I would use an attorney to negotiate and help you with a lease. Leases are hard to understand even if you have been doing it a long time. I feel an oil & gas attorney is well worth the money.
You didn't say where the minerals are locality or what state, that may be helpful.
It would greatly benefit you to listen to all this good advice. Don't be impressed by the $ sign and ignore the tiny print on the lease. It's tiny for a reason.
I'm attaching a little "starter" guide to read ... by Mr. John McFarland.
Good luck,
Pat
504-DealingwithLandmen.doc (34.5 KB)Virginia, Thank you very much.
Pat, thank u so much, this helps a lot. I appreciate your time.
Ok thank you.
Please let me make myself clearer ... "Don't be impressed by the $ sign and "don't ignore the tiny print on the lease. It's tiny for a reason." They hope you won't read it.
Good luck,
Pat
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Corby,
Pat is so right. Don't even look at the check, look for the fine print. Also, be sure to sign a no deduction lease or you may be giving about 40% way real fast for deduction. See if it has an extension clause for the same money, always add a few hundred to the extension for bonus as lease bonus go up when oil goes up and you don't want to give you lease away if they don't get a well drilled in 3 yrs.
Virginia, thank u. Good advice. I was thinking of just doing a 2 year no option. That is a good idea for an extension clause. I will make sure it’s a no deduction lease too. I can put this in the lease?? Thank u very very much!! Corby
Ok thank u. I will read everything & ask questions. Thank u again.
Canadian County in Oklahoma. The town is Yukon. What I’ve read on this forum too is it is one of the hottest areas too.
Don't be afraid because you have been contacted by a Landman. We are not all bad guys. We may actually be representing an Oil Company or an interested party with a good deal in hand.
But we may be a bunch of asshole, so be careful. And roam this forum.
Bobby G.
Here is a sample of how you may add you own provisions to the lease.
EXHIBIT “A”
Attached hereto and made a part hereof that certain Oil, Gas and Mineral Lease, dated _________________, 20 __ by and between _____________________________________, Lessor, and ______________________________, Lessee.
PROPERTY DESCRIPTION (“Leased Premises”):
________ acres of land, more or less, being a part of the _________________________ Survey, Abstract_____, ________________________ County, Texas, and being the same land more particularly described in that certain Warranty Deed dated ____________________ from _______________________ and recorded in Volume _____, Page ____ of the Deed Records of _______________________County, Texas, to which reference is herein made for a more complete description.
ADDED LEASE PROVISION(S):
The following agreements and provisions shall supersede and govern, and shall inure to the benefit of, and be binding upon the parties hereto and their respective heirs, representatives, successors and assigns.
Now, list your add on provisions. Be sure to protect your groundwater. I would suggest that you don't let them use it for any purpose. You do not want to chance contamination to your ground water.
Good luck,
Pat
Good! And, so honestly put!
Pat
Oh Wow!! Thank u for taking the time to do this. Perfect .
Ok . Thank u Bobby.