Proposed Oil, Gas & Mineral Lease: Me being an agent for State of Texas for land that I own

Texas Mineral Rights Reeves County, TX
1

Me and my siblings received a Bonus Consideration Letter for $3,000.00 per net mineral acre in Reeves County. The State of Texas reserved the mineral rights in the conveyance of this land. (Relinquishment Act Lease). The contract that has been presented is on the GLO Relinquishment Act Lease Form. We split with the state whatever bonus money is agreed upon 50/50 and 1/4 of the Royalty Interest for a term of 3 years-Paid up. My question is, what wording in the contract should we be looking out for? We're not talking about a lot of acreage, but we still need to be cautious on what we sign. Anyone who's had dealings of this nature would really help with some insight.

2

You can contact Wendell Langdon at (806) 853-8338 or [email protected]. He's an attorney in Lubbock with experience in O&G leasing matters.

3

thanks Wendell, I was trying to get some advice before going to O&G attorney.

4

The General Land Office (GLO) will have to approve everything and companies are not allowed to change anything on the State's form without the GLO's approval. You can download the form from the GLO website, but you'll pretty much have to sign it as is. I wouldn't waste any money on an attorney. Call the GLO if you have questions, they'll be the deciding factor anyway.

5


Thanks Stephen, it just looked to simple. Always waiting for the shoe to drop. Appreciate response.
Stephen Lambert said:

The General Land Office (GLO) will have to approve everything and companies are not allowed to change anything on the State's form without the GLO's approval. You can download the form from the GLO website, but you'll pretty much have to sign it as is. I wouldn't waste any money on an attorney. Call the GLO if you have questions, they'll be the deciding factor anyway.

6

Michael, The GLO will actually approve some fairly substantial amendments to their lease form if it strengthens the lease for the lessor. They also keep an eye on the bonus and royalty rate to make sure it is reasonable. Also, you can talk to GLO attorneys, but I am not sure if they provide written examples of the kinds of modifications they will approve.

7

thank you Wade. I appreciate your input.

Wade Caldwell said:

Michael,
The GLO will actually approve some fairly substantial amendments to their lease form if it strengthens the lease for the lessor. They also keep an eye on the bonus and royalty rate to make sure it is reasonable. Also, you can talk to GLO attorneys, but I am not sure if they provide written examples of the kinds of modifications they will approve.