What process did you use to amend a lease offer? Go through the Landman that made the offer, or work through an attorney? My rights make up a small fraction of the total, so I’m not sure it would be worth the expense for an attorney, but can anyone give me a rough estimate what that would cost?
Thanks!
Around a couple of hundred dollars for a consultation.
scratch out what you don't like. Have the landman add an addendum to what you want. Everything is negotiable even if you have a small fraction. These companies look at performance metrics...who is getting the most people signed. The Landman might bend over backwards for you, but Don't overplay your hand though. You don't want production costs...more importantly you don't 3rd party production costs that's where they get you. If you have under a net acre interest go for a flat fee aside from a per acre rental bonus. With a flat fee you may end up getting about 10k/acre. You want a good royalty...blah blah. Here is the lowdown on landman...They want the lease signed asap.
I do have a small fraction, but I also have two sisters, so maybe we have more bargaining power as a collective. We each have .00656 of roughly 60 Acres. The landman is with Antero, and there is already a pad on the surface and approved engineered plans.
That's not a whole lot. Collectively still not a whole lot. If you can get $1,000 flat signing bonus and 18% royalty, with no prod cost, no third party prod cost....that's a win. $1k flat would be $152,439.02/acre. They probably want this singed quickly.
Right. Thanks for your input and assistance!
So should I even bother asking about some of the other things I’ve seen mentioned on this forum? For example,
royalties at the point of sale instead of at the well,
restricting free use of oil/gas(water on the land,
shortening period of lack of production/operations to 90days instead of 120 days,
etc?
