Hello, Friendly Forum Members....
My question is regarding a clause in a Lease Agreement we are considering for our 320 net mineral acres in Converse County. The clause states that we will agree to be pooled into a Federal Lease, and that we will submit to a future "Ratification and Joinder" which could completely over-ride our Addendum terms and conditions. In addition, it would reduce our 18.75% royalty to 12-12.5% if this land becomes part of a Federal pool.
This property was previously (perhaps foolishly) leased under the same terms, and the "Ratification and Joinder" that was sent for us to sign was definitely NOT in our favor. We refused to sign it, and the Lease Agreements subsequently expired.
What could be the negative consequences of signing a Lease Agreement like this and becoming Federally pooled, other than what I mentioned above?
Any guidance you can give me would be MUCH appreciated! Thank you in advance for your replies ....
I would advise you to contact a lawyer in the Wyoming area with experience in negotiating oil & gas leases. I don't have any experience in pooling. But the clause that would reduce your royalty percentage certainly on the surface doesn't appear to be in your favor. But I've learned, you need to run the math. My lease with Chesapeake has an 18.75% royalty. We then became part of a BLM Exporitory Unit. I am a participant in one well which is almost all federal minerals -- almost. We participate along one edge of the well in one Section --- just three 10 acre parcels. Chesapeake is paying royalties to us at 18.75%. I don't know what they pay the federal government but I assume it is a different percentage. So I believe different rates can be paid. If you contact me directly, I can refer you to the Wyoming lawyer I used. Good Luck! John
Thank you for your help, John. I've requested you to be a friend on this forum. I'm not sure how to get a message to you at this time. I would greatly appreciate a referral to a GOOD Wyoming Attorney. I haven't received very useful assistance from those I've used in the past. Thank you again for your help.
Mark
Thank you for your help and suggestions John.
I also have a need for a Lawyer experienced in negotiating an oil lease for minerals in the Powder River Basin. How can I find one? Thank you for all your kind help.
Alan Richards said:
John Linden said:
I would advise you to contact a lawyer in the Wyoming area with experience in negotiating oil & gas leases. I don't have any experience in pooling. But the clause that would reduce your royalty percentage certainly on the surface doesn't appear to be in your favor. But I've learned, you need to run the math. My lease with Chesapeake has an 18.75% royalty. We then became part of a BLM Exporitory Unit. I am a participant in one well which is almost all federal minerals -- almost. We participate along one edge of the well in one Section --- just three 10 acre parcels. Chesapeake is paying royalties to us at 18.75%. I don't know what they pay the federal government but I assume it is a different percentage. So I believe different rates can be paid. If you contact me directly, I can refer you to the Wyoming lawyer I used. Good Luck! John
Alan: I just sent you a " friend " request. In response, send me your e-mail address and I will send you the info on the lawyer I used. Thanks John
Dear John,
Thank you very much. My email is [email protected]