We have counterproposals with Hoover and Stacy (for Anadarko) and T.S. Dudley for (Chesapeake). Our parcel is Township 32 Range 69 Section 10 6th PM. Our asking terms are for 3-year primary with 3-year 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 diligence 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 documents 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 lessee’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.