In June 2007 we (siblings) signed a 5yr lease agreement and was paid $1791.53. We didn't hear anything afterwards until now, October 2012. Denbury Resouces has sent another 5yr lease agreement for the same amount, with a 3/16th royality provision. My question is: How do I know if there has been any production on the land? Is this a fair price? Because I signed an agreement in 2007, do I have to accept the same terms as before? Do I need an attorney?
The area of land in question is in Mississippi, Rankin County at the S. Ross Barnett Resevoir Prospect.
I am completely new to this and in need of advice and direction. Please help.
Ms. Archie, you can be fairly certain that production has not happened because they probably would not need to lease from you again. If there had been a pugh clause in the first lease and production had been gained on part of the acres the new lease would be for less acres and probably less money. I would be researching and in not too great a hurry to lease again. You may get another lease offer for more money, shorter term of as little as 3 years or be able to negotiate a lease improved in all areas. Sometimes just telling those who make a lease offer that you are seeking other offers will trigger a better offer. I was really busy for a period of time and did not have time to consider an offer and told those who made the offer and they made a new higher offer every month until their original offer was doubled, trippled and quadrupled and I wasn't even trying to drive the price up, I was just working 90 hours a week not including my commute. Research and taking your time has benefits.
Mississippi online production reports are shown on the article I wrote on the home page.