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 an oil & gas company??? Can landman do this? Thank you.
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 landman will offer a low bonus, so make sure you are getting a good deal. If you have at least 160 acres 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 located 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 you 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% away 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 your lease away if they don’t get a well drilled in 3 years.
Virginia, thank you. 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 you very, very much! Corby
Ok thank you. I will read everything & ask questions. Thank you 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 assholes, so be careful. And roam this forum.
Here is a sample of how you may add your 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 groundwater.
Good luck,
Pat
Good! And, so honestly put!
Pat
Oh wow!! Thank you for taking the time to do this. Perfect.
Ok. Thank you Bobby.