Gross lease addendum

[Darren_Ferrell]

So I’m going to lease a parcel in Proctor District and would like some input on what language to have in the gross lease addendum. Even if miraculously there isn’t a loophole in the wording, it seems the drillers figure another way to take deductions. How do I know what the price at the wellhead is vs. first point of sale using the index price? I’m adding the more common addendums, but this gross proceeds is a joke. The mineral owner is never the winner. Any suggestions on a lease would really be welcome. I’m certainly going to get an attorney as well.

Especially since I have a parcel on a new well that I’m not getting paid for. Supposedly a division analyst is working on it, but it’s been 12 weeks and nothing. Then I have another parcel that they have the lease ownership, which is half of what it should be.

I would honestly just be happy with the original intent of gas leases: that the owner gets 12.5% of the proceeds from the first point of sale less the fair share of taxes.

[M_Barnes]

Highly recommend that you get a good WV attorney to answer this question. Any wording from the forum may not be reliable as well meaning replies may not actually know the law. Depending upon your area, you may be able to get more than the 1/8th (12.5%).

[CCaffey]

You will clearly get more than a 1/8th (which you no doubt know) and I suspect your point was more, “Can’t we just simplify it like the old days?” I concur, but that ship has sailed.

There are some well-qualified O&G lawyers in WV. As recommended, spend a few hundred bucks for their lease review and an opinion. It will likely be worth it.