Lease in Converse County

We have counterproposals with Hoover and Stacy ( for Anadarko ) and T.S. Dudley for ( Chesapeake ). Our parcel is T32 NR69 Sect 10 6thPM. Our asking terms are for 3 yr primary with 3 yr option at a market rate, 3/16ths Royalty, the inclusion of an indemnity clause, a Pugh clause, they search and warranty title, they pay by company check not a bank draft. We have put this together with a healthy amount of due dilligence but still harbor a few concerns.

We are considering an independent Landman to peruse the contract and give us a thumbs up or down on our work and also we are concerned about getting paid. Are these companies entirely reputable and will issue valid checks for signed paperwork or should we seek some type of escrow where doc's and funds are held and distributed by a third party ( i.e. escrow company or an attorney )?

We have not used an attorney for a contract to this point because we are using the leasee's paperwork with an addendum to their proposals that strikes or modifies the terms to our position.

Would love some feedback on our thinking and any insight to the two companies involved.


In my opinion I would definitely run this lease by an attorney or a landman you trust. This lease may outlast your lifetime. Usually the company's "standard" form lease is more favorable to them than the mineral owner (even if you amend the hell out of it). In particular watch both the unitisation and federal exploratory unit language. Very complicated stuff and I think you would need an experienced attorney to work through those. Rob

Hi Craig,

Read your post - i'm a landman and would be happy to visit with you about your lease - my family (Brinkerhoff Drilling) conduct a lot of work in WY and I love it up there - let me know and i'll send you my number/email - best Will