# First arms-length clarification

**URL:** https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923
**Category:** Grady County, OK
**Created:** [December 7, 2022, 9:37pm UTC](https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923 "2022-12-07T21:37:08Z")
**Posts on this page:** 4
**Page:** 1

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### Author: ![PKD](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/pkd/32/12244_2.png) [@PKD](https://www.mineralrightsforum.com/u/PKD)
#### Post date: [December 7, 2022, 9:37pm UTC](https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923/1 "2022-12-07T21:37:08Z")

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Please explain first arms-length and is it always needed in an exhibit? I was told to add it by my lawyer but the company I am trying to negotiate with has struck through it. Is that to their benefit and how? How is it detrimental to me? Thanks in advance.

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### Author: ![M\_Barnes](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/m_barnes/32/10942_2.png) [@M\_Barnes](https://www.mineralrightsforum.com/u/M_Barnes)
#### Post date: [December 8, 2022, 2:05pm UTC](https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923/2 "2022-12-08T14:05:02Z")

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In the past, certain operating companies have sold their oil and gas to their own subsidiary companies at questionably inflated prices. The parent company would have gained quite a benefit. If there were post production charges, then those were possibly inflated charges would have been passed on to the mineral owner.

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### Author: ![Richard\_Winblad](https://www.mineralrightsforum.com/user_avatar/www.mineralrightsforum.com/richard_winblad/32/11511_2.png) [@Richard\_Winblad](https://www.mineralrightsforum.com/u/Richard_Winblad)
#### Post date: [December 12, 2022, 9:25pm UTC](https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923/3 "2022-12-12T21:25:01Z")

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Go back to your lawyer, if they struck portions then filed the lease you need to take some action to correct their malfeasance.

_ **This post is not legal, tax or investment advice. Reading or responding to this post does not create an attorney/client relationship.** _

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### Author: ![system](https://www.mineralrightsforum.com/uploads/db5755/original/3X/6/c/6c7c56608c843272ad6e3662ce9562a5956f173e.png) [@system](https://www.mineralrightsforum.com/u/system)
#### Post date: [March 7, 2023, 9:37pm UTC](https://www.mineralrightsforum.com/t/first-arms-length-clarification/68923/4 "2023-03-07T21:37:17Z")

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