I have read a few threads, but mostly I don’t know where to start as there is so much information that I am lost. Our family was approached about an oil and gas lease in Moffat County Colorado. It is a 3 year lease with a 2 year option. The last and apparently best offer was from Quicksilver. I am concerned about the contract and royalty language and wonder if I should hire an attorney or if I can figure it out on my own. I do see that the bonus $/acre ($500) is good and royalties are good (17.5)for this area but they will take out production costs (1/8) and we are stuck with them if they start producing. Any advice? Lead me to a good thread/attorney? Expectations? This is all new to me. We inherited the rights from my grandmother. I don’t even know who owns the land but I assume it is BLM.
Here is a link to a thread that has been carrying on for a while in Moffat County:
Lease Rates in Moffat County, CO
You should also join the Moffat County Group where several other mineral owners are discussing their leases.
Best of luck,
It sounds like what they are offering is 500 per net acre, 3yr with 2 yr option to renew at 17.5%. You may well be dealing with TJ landservices...maybe even Brent Rogers. Their lease is bad because they only want to pay Royality interests on their net...not gross...so they want to withhold costs for seperating, refining, transporting, etc. There are so many red flags in leasing. I suggest you look at the NARO Rider (national assn. of royality owners). Quicksilver will use this with their lease as a rider to the lease. NARO can also help you by referring you to expiienced individuals to advise and review proposed leases. My experience - Be patient, you are in a "hot area", take the time to learn what you are doing, and Attys don't know very much about leasing..
I too have mineral in that area..Quicksilver was offering 500 for first 3 yrs, then 750 for add'l 2. and 3/16th interest. We worked out most of the lease over several months, but I decided to go with Petro Hunt - took my lease entirely. Best -
Thank you for all of the information. We did sign the lease with Quicksilver. They said it would only take a couple of weeks for the bonus money but it’s been about 6 now. Should I be concerned? I believe the lease said they had up to 60 days, but the guy we were dealing with said all of the title work was done so it would only be a week or two. I am worried that if the bonus money is delinquent, they may be bad with royalities etc as well if they ever start producing?