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Started By
Message
OT oil tycoons that have property with oil/gas leases, a question:
Posted on 5/14/14 at 8:57 pm
Posted on 5/14/14 at 8:57 pm
Just received a lease request for some property I inherited in Texas. Are these leases standard across most companies?
What do I need to know about these leases?
What do I need to know about these leases?
18
Posted on 5/14/14 at 8:59 pm to saltybulldog
Got some leases....give em to me.
Posted on 5/14/14 at 8:59 pm to saltybulldog
sell out man
Posted on 5/14/14 at 9:00 pm to saltybulldog
Read it carefully
Posted on 5/14/14 at 9:01 pm to saltybulldog
(no message)
This post was edited on 8/8/20 at 11:19 am
Posted on 5/14/14 at 9:02 pm to saltybulldog
read it very carefully before signing it...and if you are not good with such things, get an attorney to look at it for you...
frick around with that and you may find yourself having to clean up a toxic waste site instead of retiring someday....
frick around with that and you may find yourself having to clean up a toxic waste site instead of retiring someday....
Posted on 5/14/14 at 9:03 pm to saltybulldog
turn them down the first time they ask. They will come back offering you more money. Turn them down again. They will come back again offering your more money. Balls in your court now
Posted on 5/14/14 at 9:08 pm to saltybulldog
This definitely sounds like something that is worth taking to an attorney
Posted on 5/14/14 at 9:08 pm to saltybulldog
(no message)
This post was edited on 8/8/20 at 11:19 am
Posted on 5/14/14 at 9:09 pm to saltybulldog
Have an attorney look at it and ask for at least 3/8ths
Posted on 5/14/14 at 9:20 pm to saltybulldog
Do read the contract carefully and yes, these types of contracts are very standard.
Posted on 5/14/14 at 9:56 pm to saltybulldog
You'll never get a favored nations clause, don't focus so much on the bonus, focus on your royalty percentage, you'll probably do well with a 1/5, but probably won't be able to get a 1/4, but request a no surface operations clause and a hard consent with penalty.
Posted on 5/15/14 at 7:06 am to saltybulldog
How many acres is it and what is your interest? It is very possible you will spend more on 1 hour with an attorney than you will receive in two years of oil royalties. We have some properties that pay $10/month 
. A standard lease pays 1/8 these days, my dad always tries to get them to at least 1/5 or 1/4. Sometimes it works, sometimes it doesn't. Rather than have an attorney review it, do you have any friends or family with experience?
ETA: 5 day late edit to say, yes, I meant 1/8 is standard - 3/8 would be great.
. A standard lease pays 1/8 these days, my dad always tries to get them to at least 1/5 or 1/4. Sometimes it works, sometimes it doesn't. Rather than have an attorney review it, do you have any friends or family with experience? ETA: 5 day late edit to say, yes, I meant 1/8 is standard - 3/8 would be great.
This post was edited on 5/19/14 at 10:24 pm
Posted on 5/15/14 at 7:28 am to saltybulldog
What county is it in?
The Permian/Delaware Basins and the Eagleford are extremely busy right now and the average lease terms are much higher than most everywhere else in Texas.
The Permian/Delaware Basins and the Eagleford are extremely busy right now and the average lease terms are much higher than most everywhere else in Texas.
Posted on 5/15/14 at 8:30 am to saltybulldog
I inherited 13% of my great grandmas land the has been leased to an o&g company for 10+ years. They have 1 well on the property and it has been doing pretty good. I'm 20 and I inherited the land when I was 12, but they couldn't give me money until I turned 18. They just got back with me last month, I had to fill out a w9 and sign off on some paperwork (my aunt told me it was legit) and the dude have me a check for 50 bucks and hauled arse.
Posted on 5/15/14 at 8:48 am to saltybulldog
Insist on Louisiana choice of law so that after decades of revenue from shite land you can sue them for some unspecified contamination and rake them over the coals for 100 million in "remediation" costs and then put the money in your pocket without doing an ounce of remediation.
Posted on 5/15/14 at 9:55 am to saltybulldog
You probably just own land, NOT the mineral rights. The chances of you having mineral rights in the State of Texas (especially anywhere in the Western half of the state) are slim and none.
If you only have land rights then you'd better take what they're offering because all they need is a majority of the mineral holders go-ahead and they can drill, with or without your consent.
Lawyer up.
If you only have land rights then you'd better take what they're offering because all they need is a majority of the mineral holders go-ahead and they can drill, with or without your consent.
Lawyer up.
This post was edited on 5/15/14 at 9:57 am
Posted on 5/16/14 at 12:02 pm to saltybulldog
(no message)
This post was edited on 8/8/20 at 11:19 am
Posted on 5/16/14 at 12:21 pm to saltybulldog
You want your royalties paid to you before costs are taken out.
You want it specified that all surface rights are still yours and if a site is chosen on your land than an addition $$$$$$ will be owed
You want a depth clause so that if they want to drill past the specified distance it will cost $$$$$$$
You want it specified that all surface rights are still yours and if a site is chosen on your land than an addition $$$$$$ will be owed
You want a depth clause so that if they want to drill past the specified distance it will cost $$$$$$$
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