I thought I understood the role of a landman - not too unlike the role of the agent for a book, negotiating the best deal, except they may be limited to working for just one company. But with the contract offered , I’m uncertain. the legal language sounds so boilerplate that I’m confused. the part I’m to sign refers to the “negotiated price”, never spelling it out. Neither does it specify , as best that I can tell, obligations or commitment for the drilling company we thought we were working with. Can someone clarify?
Providing the state, county, will probably help get a more specific response. But at no time should you ever sign a legally binding document without knowing what you are signing and DO NOT sign the oil and gas lease and hand it over without getting certified funds in your hands or the bank. ALL things in the oil and gas lease are negotiable so don’t settle for what has been “offered”.
Good Luck.
If a landman contacted you with an offer he represents only the potential lessee, or possibly himself hoping to flip it at a profit if you sign without pinning down the credibility of the lessee. Regardless what they might tell you don’t assume they are trying to help you or are looking out for your interest.
Regarding your comment about the lease saying “negotiated price” and not stating the amount. Leases typically don’t show the amount of the bonus payment and instead use a general term like $10 in hand paid. It’s critical to get that bonus amount pinned down when you are negotiating the lease terms and, as Todd stated above, get that bonus payment in hand before you give them your original signed, notarized lease.
As mentioned by previous posters, you should familiarize yourself with the lease. Every clause in the lease has significant meaning and is drafted in the company’s favor. You also need to know who you’re dealing with - the landman himself (lease flipper) or an agent of the oil company (producer). Keep in mind, the lease is a legal, binding contract and can tie up your assets for a long time if not properly structured. Most people inherit mineral interest and have not idea what they’re getting into, causing them to lose tons of money by just signing any documents they receive.
All that said, if you’re not willing or able to invest the time in educating yourself, you should at least contract a landman or attorney to review and negotiate on your behalf. In many instances they will more than make up for their costs by negotiating better terms and earning you more money.
Best of luck.
Unfortunately anyone can call themselves a Landman. You do not have to have a degree or be certified to be a Landman. Some states are trying to “fix” this by requiring a Landman to have a real estate license, but there are many exceptions for this requirement. There are some professional, competent Landman out there, but there are just as many looking to make a quick buck. A Landman’s loyalty is not to the mineral owner. You should have an attorney or a third party landman look over the lease/deed.
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Same with lawyers, etc. You don’t have to be a lawyer to know the laws.
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@TODD_M_Baker While on it’s face I suppose this is true, in the context of a party representing or acting on behalf of another (which is the context here), credentialing is highly important in my view. Why? Because it means they’ve got something to lose should they be found lacking in integrity, ethics, etc. with respect to how they’ve treated a client.
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