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All Blog Posts (177)

I inherited some producing minerals.....what next?

Nothing in this life is forever.

Let's take a scenario.  Mom and Dad owned some minerals and they have been receiving royalty checks for years.

Mom and Dad went on to their reward and the checks still come to their old address in their name.  How do you get them in your name?

First, title must reside somewhere.  When a death occurs, the land(s) belong to the Estate of the deceased.  In other jurisdictions, it may be called something else (like…


Added by Buddy Cotten on July 21, 2017 at 1:57am — 16 Comments

Audit Privileges

It is well established case law in Texas that the Lessor has no right to audit the books of the Operator without that right being expressly granted in an oil and gas lease.

Does your lease provide that right?

If not, you might want to consider the following language:

"5.11 Without limiting Lessor's rights or Lessee's obligations under any other provision of this Lease, commencing on the completion date of the first well drilled on the Leased…


Added by Buddy Cotten on May 8, 2017 at 8:35pm — 6 Comments

GDHM Land & Mineral Owner Seminar

Graves Dougherty Hearon & Moody is hosting its 4th Annual Land & Mineral Owner Seminar on May 12, 2017 in Austin, Texas. The seminar will cover topics such as allocation wells, oil and gas leasing, eminent domain, air emissions and air quality, and much more. For more information and to register, visit the seminar website.…


Added by Nicholas C. Miller on May 2, 2017 at 3:28pm — 7 Comments

Excess Royalty

Let's touch on the non-participating royalty interest (NPRI) for a moment. 

A NPRI is a non-possessory right in the royalty, which burdens the interest owned by the owner of the minerals.  The NPRI has no interest in the minerals in place, but rather is a share of production that is free of the costs and expenses of exploration and production.  The NPRI has a share of the production when it comes to the surface and is not a possessory…


Added by Buddy Cotten on May 1, 2017 at 12:00am — 3 Comments

Production in Paying Quantities

Oil and Gas Leases generally provide that the lease will last for _____ years (primary term) and as long thereafter as oil and/or gas is produced in paying quantities (secondary term).

So what is paying quantities?  Generally speaking, paying quantities is an amount sufficient to cover the lifting costs of the produced product and an amount that a reasonably prudent operator would produce under the same or similar circumstances and continue to produce for a profit.  Does this…


Added by Buddy Cotten on April 26, 2017 at 2:36pm — 3 Comments

Grazing Lease

This is not strictly an oil and gas item.

Some years ago, my employer asked me to develop a Grazing Lease for their use.  As an employee, I was able to do so and avoid the Unauthorized Practice of Law statute.

I thought that there might be some who would find it of use as a boilerplate form that you could modify (or have your attorney modify) for your use.

So, I am attaching it for your review.  You may use this form for your own use and may not…


Added by Buddy Cotten on April 7, 2017 at 4:12pm — 1 Comment

I cut the per rod price for a pipeline row on purpose!

To cut the price on purpose sounds counter-intuitive.  But hear me out.

A pipeline company contacts my client to cross their property, approximately 550', or 33 1/3 rods.

I asked to see a plat of their route.  It was only 3.5 miles.

My client retained a strip of land, as a right of way corridor, from the chemical plants all the way to the river, many years ago - and sold the rest of their surface.

Going rate for rights of way in my…


Added by Buddy Cotten on March 10, 2017 at 2:00pm — 1 Comment

West Virginia Oil and Gas Lease Basics

IMPORTANT!:  The following article includes good advice about how to improve a “standard” oil and gas lease.  However, it is no substitute for hiring a lawyer to read the exact document you have and give you advice about the exact language of that document.  Even if you decide not to hire me, go find a lawyer that knows oil and gas leases.

With the price of oil and natural gas rising and, more importantly, with production numbers dropping and new pipelines…


Added by Kyle Nuttall on February 27, 2017 at 4:43pm — 2 Comments

2017 Trading forecast

2017-2018 Monthly WTI trading forecast.

It is important to note that this forecast is for commodity trading only.  The actual price received may be higher or lower than these numbers seem to indicate.

There is a volatility of about $10.00 per bbl either way in any given month.  eg. 20%

Attached is my annual report that shows my…


Added by Buddy Cotten on February 13, 2017 at 10:54am — No Comments

Website issues: we need your help!

Some of our users are having trouble accessing the forum, with some browsers timing out or not rendering the full site. The tech support team is working on a fix and has requested additional information to resolve the issues.

If you have not been able to log in at least once or of it is consistently slow, please email your IP address and Internet Service Provider to me and I will pass the info along to the teach…


Added by Elizabeth Alford on September 26, 2016 at 1:00pm — 1 Comment

After the Probate: What’s Next?

Oil, gas, and mineral rights are real property in Colorado, because of that real property distinction when the same are owned solely in a decedent’s name, they are subject to probate to update that title.  Many hours and legal fees are devoted to updating title in Colorado when family members pass, especially when multiple generations have passed without an update to the title.  While Colorado offers abbreviated and informal probate processes, such processes can be frustrating to oil, gas,…


Added by Jenna H. Keller on August 23, 2016 at 3:30pm — 2 Comments

Apples and Oranges to Oil & Gas and Wind – Part Two

In our last article entitled part #1 we discussed the apples to apples of wind and oil and gas.  This article explores the apples to oranges of wind to oil and gas. 


Wind energy relies heavily on financing

Many oil and gas operators and operations are self-funded and do not rely heavily on financing structure…


Added by Jenna H. Keller on July 20, 2016 at 3:30pm — No Comments

The Extended Reach Well and the Surface Owner

From time to time, oil companies will want to use a surface location that is not located within the boundaries of a lease or unit to develop the minerals.

In order to do so, they have to get the permission of the surface owner to do so.  This is in the nature of an "easement of passage."

So, what are these things worth?  With a road, 10 years ago, in my area, the cost was about $50K per well.  That is now up to $75K for 5 years and a rental of $25K for each…


Added by Buddy Cotten on July 10, 2016 at 4:56pm — No Comments

Ratifying a Lease or Unit with a NPRI interest -- Revisited

An interesting situation hit my desk 2 weeks ago.

The property is located in Texas.

My client owns a Non-Participating Royalty Interest of 1/3 x 1/32, or a decimal interest of .010416667.

The Operator wanted my client to ratify 5 separate leases where our NPRI burdened the lease.  The total NPRI covered around 2100 acres.  One of the leases provided for a cost free royalty, the others did not.

Here you are going to have to follow…


Added by Buddy Cotten on June 27, 2016 at 1:40am — No Comments

REPORT SPAM in the Forums

Thanks for all of you who are helping to crack down on the spam in our community.

The admins can't be everywhere, so we rely on you to notify us when people aren't following the rules. You will notice a new red button to REPORT SPAM that is now located on right side of every page in the community. If you come across someone who is not following our guideline, please click and repot. 

Please refer to our…


Added by Elizabeth Alford on June 9, 2016 at 3:25pm — No Comments

Apples and Oranges to Oil & Gas and Wind – Part I

Wind energy continues to expand and develop, especially in the state of Colorado.  With a new project planned by Xcel in eastern Colorado near Limon, Deer Trail, and Simla, concepts from oil and gas can often be borrowed in the negotiations for wind leases.    Wind energy is a close sister cousin to oil and gas and there are many comparisons to be made of wind energy to…


Added by Jenna H. Keller on May 15, 2016 at 3:45pm — 1 Comment

Division Order Worksheet

All of the time we receive Division Orders. Ok, no we don't. But hopefully sometimes we do!

How do you know if you are being paid properly? The only way to know for sure is to compute your own interest. In order to do so, you need to know several things.

  1. The size of the Unit 
  2. Your net acres in each tract that you contributed to the unit. 
  3. Your royalty rate in each contributed tract.
  4. If there is a NPRI that burdens your royalty…

Added by Buddy Cotten on April 25, 2016 at 11:30am — 4 Comments

Playing by the Rules: An Important Update on Forum Policy

Dear members,

Following is a special message from the ownership and management of the Mineral Rights Forum.  

To the thousands and thousands of members who obey the rules and participate on the forum in the spirit of both giving and receiving, thank you.  We welcome you and yours alike.  The 'internet age' has afforded connectivity among individuals and groups in unprecedented fashion, and this forum for America's…


Added by Elizabeth Alford on April 12, 2016 at 7:32pm — No Comments

What exactly is a landman?

If you own the oil and gas mineral rights on a piece of property, you may have already been contacted by a landman looking for a lease. But if you are new to the game, you might not fully understand who this person is and whether you can trust him/her. The following factsheet gives a quick glimpse at the roles and responsibilities of this very important person involved in the leasing process.…


Added by Elizabeth Alford on March 25, 2016 at 1:03pm — 2 Comments

So....When does an oil and gas lease actually expire?

This should be an easy answer, but the devil is in the details of the oil and gas lease itself.

Many oil and gas leases have two terms -- a primary term and a secondary term.

The primary term is defined in an oil and gas lease generally in the following language;

"2.   This is a paid up lease and subject to the other provisions herein contained, this lease shall be for a term ending three (3) years from the date hereof (called “primary term”)…


Added by Buddy Cotten on March 21, 2016 at 8:49am — 11 Comments

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