How do I remove or counter the lessee's option to extend the primary term of the lease? I have an EXHIBIT "A" I am attaching to the original lease offer. There are additional terms I would want to be part of the lease. Should I (some how) delete the extension option in this attachment? Any help would be appreciated. Thanks
The most professional way to handle that would not be to ask that question here. You should contact the person making the offer and discuss that with them.
It is a part of the negotiations.
I have seen or heard about mineral owners deleting a royalty and returning the lease with a handwritten "1/3rd" substituted.
The lease was returned unpaid, but maybe some of that could have been avoided if there had been a mutual agreement as to what the printed form contained regarding royalty.
Mineral owners deleting clauses on lease forms without discussing it first with the landman offeror is as unprofessional a way to do business as some of the things you read here about mineral buyers or other types of vultures.
Dave, I would have to disagree with you on that. The lessee, most times, did not discuss with the mineral owner what the contents of the lease would be before he sent it, was the landman being unprofessional? Lining something out or hand writing something in may not be neat but if neatness is desired the landman/lessee can draw up a new lease incorporating the changes. Both sides are free to reject the lease or any parts of it, nothing unprofessional about that. If a professional wants to complain about how unprofessional mineral owners are, then they should prepare to start paying the prices that a professional would demand for the same acreage, if the mineral owners become professional. Just saying.
That's exactly what I said. It's a part of the negotiations. It has to be mutual. Not unilateral.
If William has issues with the lease, he should contact the person who prepared it, not ask here what type of knife he should use to carve it up.
You really didn't think that they were going to give you 1/3rd, did you? :)
Dave, they might think 1/3 was an excellent deal, there are 4 wells on it now and no lease. They might want to make more than the 50% actual cost of drilling and completing the well since that should be recoverd now [around 240k bbl] for one well and the well is still chugging along at 330 bbl a day. 2/3 would in my opinion look extremely attractive compared to zero. The main problem here is convincing me I should settle for 1/3. Crazy talk, I know.
They can always drill it themselves "straight up".
Dave,
You are completely out of line. Land men do not discuss these clauses with me. I line item veto the clauses and attach my exhibit changing the amount for delay rental.
Take it or force pool.
Tom
Dave Quincy said:
The most professional way to handle that would not be to ask that question here. You should contact the person making the offer and discuss that with them.
It is a part of the negotiations.
I have seen or heard about mineral owners deleting a royalty and returning the lease with a handwritten "1/3rd" substituted.
The lease was returned unpaid, but maybe some of that could have been avoided if there had been a mutual agreement as to what the printed form contained regarding royalty.
Mineral owners deleting clauses on lease forms without discussing it first with the landman offeror is as unprofessional a way to do business as some of the things you read here about mineral buyers or other types of vultures.
You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
More importantly, however, is that there is no privity of contract between him and rw kennedy or Tom Ed Moore. Neither one of you has final authority to speak for the lessee on William's lease. Therefore, he is much better advised to discuss any changes in the lease provisions with their authorized agent, and not here.
I've left people out before, and there wasn't anything they could do about it.
William,
I've been through the drill (pun intended) a number of times now, I guess my answer is there is no right or wrong way to communicate your negotiating points. Most recently for me, when initial contact was made and terms were discussed, I told the landman that I was not interested in a lease extension. Nonetheless, when the lease showed up at my door, it had a lease extension clause in it...which I assumed was just their company's standard lease.
So, my next approach was the 'red ink" method, in which I crossed out that clause (among many) and printed out a laundry list of other points which were important to me (which my attorney helped me craft)...which no doubt as Dave suggests was fairly unprofessional of me. But the negotiation was amicable and it was ultimately effective. So, I suppose my answer is you should approach it however you can communicate your wishes as clearly and effectively as possible and utilize an experienced attorney to help you craft the actual language which appears on the final lease.
Best regards,
GAllen
OK, The best thing to do is ignore the lease. Say nothing and wait for the spacing.
Dave Quincy said:
You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Also, It can be leased to another party.
Tom
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
I've left people out before, and there wasn't anything they could do about it.
You can do anything you want to. If they force you to sign, it would not be legal.
Tom Ed Moore said:
OK, The best thing to do is ignore the lease. Say nothing and wait for the spacing.
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Also, It can be leased to another party.
Tom
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
I've left people out before, and there wasn't anything they could do about it.
Dave, you are saying you have left people out in Colorado, where Mr Matthews is from and there was nothing they could do about it? Wow, when did the laws change?
Dave Quincy said:
You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
More importantly, however, is that there is no privity of contract between him and rw kennedy or Tom Ed Moore. Neither one of you has final authority to speak for the lessee on William's lease. Therefore, he is much better advised to discuss any changes in the lease provisions with their authorized agent, and not here.
I've left people out before, and there wasn't anything they could do about it.
Tom Ed Moore said:
OK, The best thing to do is ignore the lease. Say nothing and wait for the spacing.
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Also, It can be leased to another party.
Tom
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
I've left people out before, and there wasn't anything they could do about it.
NO, you said all that. Is Tom Ed Moore also from Co.?
r w kennedy said:
Dave, you are saying you have left people out in Colorado, where Mr Matthews is from and there was nothing they could do about it? Wow, when did the laws change?
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
More importantly, however, is that there is no privity of contract between him and rw kennedy or Tom Ed Moore. Neither one of you has final authority to speak for the lessee on William's lease. Therefore, he is much better advised to discuss any changes in the lease provisions with their authorized agent, and not here.
I've left people out before, and there wasn't anything they could do about it.
If I have 10 acres in the Woodford play and was ignored, there would be an attorney negotiated settlement.
Anyway, there are a lot of people who want hot spot leases.
Tom
Tom Ed Moore said:
Tom Ed Moore said:OK, The best thing to do is ignore the lease. Say nothing and wait for the spacing.
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Also, It can be leased to another party.
Tom
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
I've left people out before, and there wasn't anything they could do about it.
They often want them. They sometimes regret getting them, but it's only money.
It wasn't in Co. or the Woodford play, but I have left people out before and they ended up getting nothing, and there was nothing that they could do about it, no matter how many times they called me.
Tom Ed Moore said:
If I have 10 acres in the Woodford play and was ignored, there would be an attorney negotiated settlement.
Anyway, there are a lot of people who want hot spot leases.
Tom
Tom Ed Moore said:
Tom Ed Moore said:OK, The best thing to do is ignore the lease. Say nothing and wait for the spacing.
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Also, It can be leased to another party.
Tom
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
I've left people out before, and there wasn't anything they could do about it.
Sorry, I didn't realise that we were in Tom's thread and that your advice was only for Tom, who by the way didn't ask, as near as I can tell. Since Toms acres are in Oklahoma, Wow, when did the laws change?
Dave Quincy said:
NO, you said all that. Is Tom Ed Moore also from Co.?
r w kennedy said:Dave, you are saying you have left people out in Colorado, where Mr Matthews is from and there was nothing they could do about it? Wow, when did the laws change?
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
More importantly, however, is that there is no privity of contract between him and rw kennedy or Tom Ed Moore. Neither one of you has final authority to speak for the lessee on William's lease. Therefore, he is much better advised to discuss any changes in the lease provisions with their authorized agent, and not here.
I've left people out before, and there wasn't anything they could do about it.
No, wasn't OK either, but you're getting warm.
Sorry, I didn't realize that I asked you to reply to my reply to Wm., the best advice possible. Take it up with the person who made the offer.
r w kennedy said:
Sorry, I didn't realise that we were in Tom's thread and that your advice was only for Tom, who by the way didn't ask, as near as I can tell. Since Toms acres are in Oklahoma, Wow, when did the laws change?
Dave Quincy said:
NO, you said all that. Is Tom Ed Moore also from Co.?
r w kennedy said:Dave, you are saying you have left people out in Colorado, where Mr Matthews is from and there was nothing they could do about it? Wow, when did the laws change?
Dave Quincy said:You are absolutely correct. By saying take it, that would also have to include the right to not take it.
Landmen assume that if the mineral owner has questions, they will ask them.
Your posting is too limiting. It assumes that they have to accept the changes you make. They don't. It also assumes they have to force pool you. They don't.
There are also situations where they can make you a window on a unit, and leave you out.
Your comments are completely out of line. My advice to William was the best. If he assumes that any changes or deletions he makes will automatically be accepted, he may get left out in the cold.
More importantly, however, is that there is no privity of contract between him and rw kennedy or Tom Ed Moore. Neither one of you has final authority to speak for the lessee on William's lease. Therefore, he is much better advised to discuss any changes in the lease provisions with their authorized agent, and not here.
I've left people out before, and there wasn't anything they could do about it.
You did ask if Tom was from Colorado. I will just say that there are minerals in other states than Texas and that the laws will frequently diiffer. Bringing in Texas rules and laws has absolutely nothing to do with this thread and I don't know why you did it. At this point, I don't think you do either. Keep searching though.
Maybe he was from Colorado, and got to Texas as fast as he could, but landed north of the Red by mistake.. I really didn't know.
What I do know, is that I gave Wm. the best advice anyone could give him, i.e., discuss his lease provisions with the person that he is in privity of contract with, and not here.
No, come to think of it. That isn't even good advice. It's super advice.
Hold the applause.