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Modern Day Oil and Gas Lease Form, User Guide, Explanation of Terms-special shale clauses

Attached is a modern day oil and gas leasing form with special shale clauses, drafted with the mineral, royalty and land owner interest in mind.  A replacement for the Oil Company biased Producers 88 form.  Feel free to pass on to your advisor or lawyer.  Also attached is a Lease-O-Meter, a method for giving your existing lease a report card to determine how friendly it is to the mineral and royalty owner.

LRW

OIL%20AND%20GAS%20LEASE%20MODEL%2007042012.docx

OIL%20AND%20GAS%20LEASE%20MODEL%20USER%20GUIDE%2007042012.docx

OIL%20AND%20GAS%20LEASE%20MODEL%2002042013%20-%20Explanation%20of%2...

Transfer%20Note.docx

LEASEOMETER%20V.%202%202012.docx

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Keywords: Descripton, Explanation, Form, Glossary, Guideline, Lease, Lease-O-Meter, Minerals, Royalty

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Comment by Mark West on July 17, 2013 at 10:23pm

Thank you for this VERY generous donation.  Many would be surprised at what oil companies will accept.  They may alter a clause or two, but if you come prepared with your own lease or an exceptional Addendum, they often accept ALL the conditions.  I've been using an 8-page Addendum for several years now, and it hasn't been declined once.  One major company, however, wanted to delete everything regarding accounting transparency.  BIG. RED. FLAG.  I ended up being non-participating and force pooled.

Comment by Jim Colley on May 20, 2013 at 12:55am

Love the author's pen names.  Les. R. Wright & Roy T. Ohner.  Really?  Very clever.

Comment by Kyle Nuttall on May 16, 2013 at 1:54pm

I really like your Lease-O-Meter.  That's a handy checklist.

Comment by Andrew on May 15, 2013 at 6:36pm

Buddy, that's good to hear.

Comment by Buddy Cotten on May 14, 2013 at 11:41pm

Dear Andrew,

Much tougher forms are taken in Texas every day.  Since Mr. Wright is a Texas attorney, this form is designed primarily for Texas minerals.

Obviously, if you have 10 divided acres, this does not work, but if you have 10 undivided acres in a 500 acre tract, you could get most if not all in.  It is really not that tough.

Buddy Cotten

Mineral Manager

Comment by Buddy Cotten on May 14, 2013 at 11:37pm

Dear Mr. Wright,

We should call you Mr. Right with your lease checklist - the Lease-O-Meter.  My only comment after a brief read is that some clauses have more import than others, but that would take a well seasoned person to make those determinations.

This is a great step towards quantifying lease comparisons.

Best of all things,

Buddy Cotten

Mineral Manager

Comment by Lori B on May 14, 2013 at 12:29pm

I am seriously considering using some of these ideas in a lease we are (trying) to negotiate.  Thank you.  We also bought the free hold owners association in Canada, their lease for 25 $ to use.  Not sure how this is going to play out.  I feel like we need an attorny.

Comment by Andrew on May 13, 2013 at 9:57am

Pretty well-written, but unfortunately I can't imagine any oil company agreeing to this unless the lease is for several thousand acres of very valuable minerals and they have no other choice.

Comment by Craig Ronhovde on May 10, 2013 at 12:12am

Thanks for the information.

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