I inherited mineral rights when my father passed away years ago. I am now old enough to oversee them on my own but know NOTHING about mineral rights or the process of negotiating a lease for minerals. I have been on this website now for a couple hours reading and trying to understand all of it and have realized this is way over my head and scope of understanding. I recieved in the mail a leasing agreement and need help with what to do. My first instinct (since I dont even understand what I am reading in all this paper work) is to get a lawyer to look it over and tell me what to do. Should I find a lawyer and if so does anyone have any recommendations?
What state?
Texas
Find and an attorney familiar with that area and get him to review the lease agreement and he also should know if the offer is competitive for that area. Where specifically is your land?
Someone may know an attorney in that area.
houston county texas
Yes, if I were you, I would be contacting an oil and gas attorney.
I read where Buddy Cotten (look for him on this website) says he can give the names of some good attorneys in Texas. There is a book you can order from NARO, "LOOK BEFORE YOU LEASE - A Landowner's Guide to Oil and Gas Leasing". It is easy to understand. Also, the attorney will be a good source to help you and there is membership in TLMA and NARO.
Scary to be faced with those contracts, isn’t it? I thought my inherited stuff was worthless until a pile of offers appeared in the mail. My advice: Before contacting the attorney, do some research online at least. Try “what to look for in a a mineral oil gas lease” in your search. Learn about the mineral prospects in the area near your property. Look up the terms you don’t understand. If you have a good landsman(the person trying obtain the lease), he help with terms and and help you understand royalties and such. Just don’t take his word as gospel. The company you lease to is important. Some do the drilling and some try to be the hold out for higher royalties in a secondary lease. Look up their reputation online and check with the community. Talk price of attorney fee before picking your attorney. If your interests are small, like mine, the true specialist can charge as much as your lease. Dealing with the landsman:: 1. Do not be afraid to ask for changes. More money, higher amount for a renewed lease, definitions of what constitutes drilling for lease continuation purposes, higher percentage of royalties, etc. Those standard contracts are not carved in stone. Let them know you are going to seek an attorney review. 2. When you have the necessities down, then take your written offer to the attorney to advise you. 3. Negotiate for what the attorney suggests. Don’t be surprised if you don’t get every little thing. 4. Don’t turn over the signed lease without the money. You are going to get quite and education throughout this process. Have fun!