We are a family of 3 with mineral rights in Wyoming. We each have 1/3 share of the rights. We were approached by a landman with an offer to lease our rights and 2 of us have signed with him. The 3rd member was also going to lease with him, but at the last minute decided he might want to sell his rights to a different landman who represents a different company. His offer is slightly more than what the other two members will get. From what I can determine this shouldn’t matter as long his lease is for the1/3 shares he is entitled to, and if oil is found, the royalties to the 3 family members will be based on the terms of our leases from the two companies that we sold the leases to. Is that right or are there issues that I should be aware of? Thanks.
You are right. Often times more than one company will own portions of each unit, but one company (usually the majority owner) will operate and pay royalties. You should just go after the best lease offer possible putting importance on who the operator is. You want to lease to a company that is known for drilling wells!!! That is where royalty owners make money.