Hello I was wondering if a landman offers and sends out contracts for a certain price per acre on mineral rights owned by myself and other family members, and then a couple of weeks later calls so far only me back saying she is authorized to offer more money for them, will everyone else be getting the price increase? I hadn't sent in my paper work yet because I had been busy with work but niether had my sister and she hasn't received this phone call yet. She said that there wouldn't have to be a new contract drawn up but that they would just send out another bank draft.
I am so happy to have found this site because we are all very clueless to this business, and it seems the area we have rights to is really exploding with activity right now! So we are very excited but worried about making the wrong moves.
Take the time, before signing, to reasearch what the going prices are for leases in your area and whether the company that has offered you this initial lease has any competition also leasing in your area. O&G company never/rarely come out of the gate with their best offers on initial contact, so it is likely that there may be additional bargaining power on the table for you.
Where are your minerals located and how many acres are held?
Also, really do yourself a favor and make sure that you have a qualified/good Oil and Gas attorney look over your document before you sign. The document that you sign today will likely be valid for decades/generations to come and this is your chance now to get it done right. O&G companies standard contract will have many clauses and wording that is only favorable to themselves and many of those points can be negotiated back to your own favor if you know what to look for or have someone qualified looking out for your behalf.
Congratulations and good luck with your families minerals.
David has given excellent advice. I would add that you should negotiate together and get the same terms for as many family members as you can. There is often a little more bargaining power if everyone is holding out and willing to agree on the same terms. Of course, any who have already signed are more than likely stuck with whatever they have but an attorney could verify whether or not that is true.
Thank you for responding back to me. The minerals are located in North Dakota. How many acres I’m not quite sure about. We have several sections kind of scattered around it seems like. And then those sections are sectioned. My sister and I inheireted my mothers shares when she passed away, so that sectioned off again. But a small amount is betterthan no amount and I sure don’t want to see myself or anyone else in my family taken advantage of. So I will just keep learning from all you good people and these websites and hopefully it all turns out good. Still as far as I know I am the only one who has been contacted about the price increase. I even got the new bank draft in the mail yesterday already! I am just not too sure what to do with it yet.
DJG said:
Take the time, before signing, to reasearch what the going prices are for leases in your area and whether the company that has offered you this initial lease has any competition also leasing in your area. O&G company never/rarely come out of the gate with their best offers on initial contact, so it is likely that there may be additional bargaining power on the table for you.
Where are your minerals located and how many acres are held?
Also, really do yourself a favor and make sure that you have a qualified/good Oil and Gas attorney look over your document before you sign. The document that you sign today will likely be valid for decades/generations to come and this is your chance now to get it done right. O&G companies standard contract will have many clauses and wording that is only favorable to themselves and many of those points can be negotiated back to your own favor if you know what to look for or have someone qualified looking out for your behalf.
Congratulations and good luck with your families minerals.
As gas is produced in you area the price of the rights go up.
Hold out or sign?
well let me ask you this.
do you feel lucky? do you?
Stay on top of what is going on in your county
marcellus needs 650 acres to drill.adjoning as i think not sure for all directional drill
thats not to hard in rural areas,but may be harder in urban areas.
i would think if offer went up,then someone knows something.
go to recorders web sight in your county,recorder may be online and you can reseach at will.(government working for the people for once.)
Get with neighbors and talk ,gather and work off each other,they are betting you dont The best to you
We have several in little secs. in a couple different counties, but this particular one is:
Township: 161 N Range 101 W
Sec 4 Lot 4, SW4NW4.
They first came to us all with a $150.00 MA offer then about 2 weeks later upped it to $300.00 MA. My sister and I only have a share of 0.75 net acre but alot of my other family has way more. Most of them have also already sent the first contract offer back. I hadn’t yet; not on purpose, I’m just lazy!
Mario: Your advice is great, but unfortunately none of us even live in ND. I also agree that somebody knows something. Got a letter in the mail today from a company in OK offering $1,000 for this sec. for purchase! I definately know where to file that but good grief!!! This is getting crazy!
Philip Mollner said:
Can you say what the township and range of your mineral rights are? Also, what was the bonus and royalty they offered?
We all can use all this good advice, and hope that you come back with as much information as you can to help some of us that are so green in this area… thanks for your input DJG, it’s very much appreciated…
DJG said:
Take the time, before signing, to reasearch what the going prices are for leases in your area and whether the company that has offered you this initial lease has any competition also leasing in your area. O&G company never/rarely come out of the gate with their best offers on initial contact, so it is likely that there may be additional bargaining power on the table for you.
Where are your minerals located and how many acres are held?
Also, really do yourself a favor and make sure that you have a qualified/good Oil and Gas attorney look over your document before you sign. The document that you sign today will likely be valid for decades/generations to come and this is your chance now to get it done right. O&G companies standard contract will have many clauses and wording that is only favorable to themselves and many of those points can be negotiated back to your own favor if you know what to look for or have someone qualified looking out for your behalf.
Congratulations and good luck with your families minerals.