Having inherited mineral rights and being executrix of an estate that requires a lot of research, as a newbie, I am hoping this forum will help me wade through a mess.
Current Situation with a BP lease in Upshur County (Texas):
I have a lease to sign on 81 some odd acres. My percent is tiny...ie 0.28375166. The stated royalty is 1/5 and, of course the bonus payment is small given my ownership percentage.
Along with my brother we are the last owners to be signed. I feel the lease is in order and that I probably have very little negotiating wiggle room at this point. I am inclined to sign.
However, I have a brother I am trying to work with amicably in closing the estate. He recently went to work as a landman for a company that draws up leases for Chesapeake (mainly Texas properties, I think). He only has experiences with the way his company does business and says they ALWAYS allow a mineral rights owner to have a Market Enhancement Clause put in Exhibit A if they ask. (I have read that sometimes there is other language in the lease that effectively takes the teeth out of the clause which may be why they always are agreeable.) The landman says BP is not going to do that or make any major changes on our lease since there are so many others who have already signed. Is this a truthful statement, do you think?
Is it possible that the manner in which Dales draws up agreements for Chesapeake and the way BP is handling its Texas leases are like comparing apples and oranges and never the twain will meet? Also, is it okay that BP will pretty much tie up the entire 81 acres for the three year period?
My inclination is to sign. There most likely will be some fairly good production. If we had a larger percentage and were earlier in the game, I would be applying some of the negotiating tips I have recently learned about on this site. Right now I need to be and sound semi-informed to all parties...the landman and my borther. Please help! Sorta desperate!