Antero Contract with Multiple Heirs

Due to the size of our family, the 22 acre tract of land to which we have mineral rights will be split about 16 different ways. Does any one know how many of the 16 must sign in order for Antero to proceed? I’m assuming we would have greater negotiating power if we worked as a team as opposed to individuals … but then that can get dicey.

We also have mineral rights on 2 tracts of land in Ritchie County. Is it possible to consolidate and have Antero represent us on all 3 in order to increase our negotiating power? (The more biz we give them, the more they give to us) We are currently being approached by Ritchie Petroleum Corp for those two tracts. Would have to Antero have to buy the rights from Ritchie Petroleum Corp?

I appreciate all of the info being provided here. It has been very helpful. I’m sure I will have many more questions as we move forward in this process. Thanks, Ron

About the 16 different owners of your 22 acre tract: as I understand it, all 16 must sign, including spouses. Alternative might be to form a trust or something similar. That might eat into profits with administrative costs. Another alternative is to get most of the 16 to give attorney in fact authority to 1 person who could do all the talking and signing. Of course nothing signed until all agree. The attorney-in-fact document would need to be filed in the counties where you intend to use the authority (I think - I AM NOT an attorney but my aunt was attorney in fact for my father for many years and I saw how that worked). The document could state that the authority is limited strictly to oil and gas business. An actual attorney could of course give you better, valid advice, but that is an idea. Or if the 16 are not close relatives, maybe there could be more than 1 attorney in fact, for various of the family groups. Or all 16 do their own negotiating and signing. Best if all stand together and do the same thing.

Are you following the permits assigned? If you can see who is leasing where, that is useful information.

I have read that it is important to get separate leases for each tract so be careful in the wording of the lease that they don't get you held by production for all 3 tracts (they can word it so it goes across county lines) with just 1 well drilled.

I guess your 2 Ritchie tracts are in Clay district? Clay and Union are the only places with activity. I am not sure how much drilling Ritchie Petroleum is doing, but Antero is doing a lot. Perhaps Ritchie Petroleum is planning to sell to Antero (Ritchie Petroleum would make a profit on sale). In that case, try to get more from Antero than Ritchie is offering. Antero might as well pay you directly.

It might be good to have 2 different companies trying to get your business. And remember the wording of the lease is very important, as much as the bonus money and royalty %.