I’m looking for a copy or an example of a good mineral rights lease agreement.
My community was approached by a landman and the lease he provided was very general, my community would like to add some clauses to it but the landman would not adhere. We’ve decided to contact an independent landman for negotiations and I like to have a lease agreement that I/we can add the clauses we desire.
Is this a good idea or is it pushing the issue a little much?
No I don’t think it’s pushing anything. It’s your land! Don’t let them push you, these guys are salesmen to negotiate the best deal for them and those they work for. The best solution is get together with the community pooling your land and also sharing the cost of preparation and go at them in force. The more land the more negotiating power you have. IMHO
All leases are not the same. Each lease can be unique. Don’t get pushed.
Nothing good ever comes from impatience.
Thank you Mario, I just found where one of my neighbors posted on this site (didn’t know SE had) covering a lot of our issues. Our community is having another meeting Saturday to see who all wants to be involved in pooling. The landman that was trying to have us sign with him became less than credible that’s why we are considering an independent landman. There are two things that concern me they are proposing clauses within the lease. The first one is No surface access, if a lease agreement contains no surface access is it harder to negotiate with the oil companies? And wouldn’t the oil company need at least one point of access for directional drilling? And the second is that the lease(s) can’t be sold, this one doesn’t bother me but I read an article about the Chinese are buying up mineral rights and that if possible to avoid. Is there any truth to that?
Yes it’s true, Chinese are buying mineral rights mainly from Chesapeake. Recent article on this site spells it out. State owned communist corporation country buying rights under our noses. This my friend is in my mind a national security risk.
We are not talking to our neighbors, that it is killing our sovereignty.
The best to you.
You are on the right track of thinking, but going in the wrong direction.
Flee from the Landmen! Most are passing through and come from the used car selling business (in my opinion). They will tell you anything to get your signature. You do need to work with a Landman, but be sure they are working directly for a reputable mineral drilling company and not just independent brokers trying to sell/broker a deal.
In Colorado, you have The Colorado Oil and Gas Commission which tracks drilling permits, so you can see who the players are, contact one of them and get an honest Landman recommendation. You can also get a specialized oil and gas Attorney, but that will cost you money. I doubt anyone can give you a generic lease agreement. That is where a GOOD Attorney can help.
Good luck, Thomas…
Dennis - Moffat County (where our rights are) is currently engaged in sealed bidding for some of their mineral rights. They have the info including their contract on their website. Might give you some ideas. Good luck, Christa
http://www.colorado.gov/cs/Satellite/CNTY-Moffat/CBON/1251574776744