Looking for someone to look at a "top lease" offer

I have an offer for a company to do a top lease for 1 year. The company already has a lease with me and want to do a top lease because they will be drilling. I am looking for someone to look over it to make sure I am not being takened advantage of.

A top lease is much more to your advantage than an extension or renewal of the base lease. You now have the opportunity to re-negotiate terms and conditions over the existing base lease.


Buddy Cotten

Hi David -

Sorry I haven't been back with you in a while. Been busy playing Whack-A-Mole and chasing the almighty dollar.

I agree with Buddy, who I readily admit is much more knowledgeable than I am about these things, but I can't really wrap my head around why a company that already has a lease with you wants a Top Lease rather than an extension or renewal.

They may have sold their original lease and now want to have the first right of refusal on a new lease or something, but otherwise I don't see the need for a Top Lease.

Most companies combine ownership of their leases with competitors in any given area in order to put together a drillable Unit or multiple Units. If they have Partial Assignments or other agreements in place regarding such proposed Units, then they would be seeking Extensions or Renewals rather than new Leases so that they would not have to recreate all of the Assignments and Agreements with their now "Partners" in the Units.

If you will upload here or send me whatever paperwork you have received regarding the Top Lease you described, it will help us/me see what you are up against.

Just to forewarn you: There are a number of Perps out there that have been sending people what appear to be Oil and Gas Leases which they have assumed to be Top Leases, but are actually Oil and Gas ROYALTY Leases.

They know people have interests in producing oil and gas properties or potential oil and gas properties (whether they are currently being paid or not) and are trying to fool them into leasing their ROYALTIES, generously allowing the unsuspecting Royalty Owners to reserve 1/4 royalty.

I love what I do for a living, but there are a few really, really, really sleazy people out there.

I advise you to have an experienced Oil and Gas Attorney review any offer you receive before you even verbally agree to anything.

Hope this helps -