I am new to the forum. I have been approached to lease my minerals under residential properties within the townsite.
Is anyone familiar with Dynamic Production, Inc. out of Fort Worth, TX? My offer letter signed by Gerald (Gerry)Graham. I have received offers from other companies too.
Instead of selecting your choice of “their terms”, has anyone countered their offers and negotiated a higher bonus consideration, included vertical pugh clauses, etc. in their leases with any of the companies active in the area?
Any feedback will be helpful.
The clauses of a lease offer are negotiable. Success depends upon what parameters the leasing agent has been given and their time frame. The initial draft is not in the mineral owner’s favor. It is wise to invest in a good oil and gas attorney to help with those negotiations. Although with small town lots, the price may be a factor. The mineral owner (grantor) would like the highest royalty with the highest bonus, but the grantee wants the mineral owner to sign the lowest bonus and lowest royalty. The clauses in the lease are the critical element, so understanding them is important. Do not sign a lease and hand it over without getting paid the same day.
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