Any help out there? Family jumped right in but I’m thinking of getting an attorney, mine is seperate, not sure what to do.
There are many folks on this forum that can give you some ideas, however, there needs to be much more information presented to understand your situation. What State, County are your minerals located? What were the terms offered to lease your minerals? What is the drilling and exploration activity in or around your location? How many net mineral acres do you own? Generally speaking, an Oil & Gas Attorney, is always a wise choice to assist you to modify the provisions of a lease which is very important today so you can maximize your royalty interest payments and also protect your land if you are also a surface owner. If you do retain an attorney be sure it is on a “fee for service” basis.
Taking a step-back is definitely a wise choice. People that jump at the first offer aren’t exactly known for getting the best deal. I totally agree with Mike about getting an attorney to review the lease before signing. But, you don’t necessarily need one yet. I’d sit back and see if any other offers come in, or even go and solicit some of your own. If you get at least 2 offers, not only does the price tend to go up, but they are also much more likely to agree to more favorable terms. If your family hasn’t already signed, tell them not to be foolish, and stop and think. If we’d jumped right in, we’d have lost $700 an acre, 4% royalty (actually more than that because we eventually got it to a no-cost royalty), had a 5 year rather than 3 year term, wouldn’t have had a no-surface use agreement, an indemnity clause, a water clause, a pugh clause, etc. etc.
I have 80 acres in Divide County in Northwestern North Dakota. They offered my 400 per acre for 4 years with 17.5% on royalties. I am not honestly sure on the activity, I know the landman said a well would probably go up late next year or early 2012. My family is impossible to turn around on this, they want money yesterday for it and are taking the offer they have. Can anybody recommend a good trustworthy lawyer that the oil companies don’t have their hands on already? Thanks for any help on this, I live in MN now, was left the rights from my grandfather.