I received a lease for a small portion of inherited land in Montague County. After consulting with an attorney, I contacted the company coordinating the lease advising of the changes requested (to exclude mineral rights in addition to oil rights) and not have an automatic renewal after 2 years. The royalty amount is fair. If I refuse to sign their lease and they are not willing to accept my revisions, what would be my options going forward? There are 90 family members and they are saying they only need 80% to accept to proceed to drill.
Dear Ms. Fortier,
The landman does not know what he is talking about. There is no rule in Texas as to the minimum percentage of mineral owners that must consent to exploration. Each cotenant gets to make that decision and many make it by leasing their property. The oil company makes the decision whether to carry the non-consenting cotenants interest.
The landman may be from Louisiana, where the super majority of 80% is required. But, the Louisiana Mineral Code does not apply in Texas.
From what you have shared, you are a cotenant and a cotenant is usually neither a party nor agent for the other without express language giving them that power.
As to options going forward, you may either lease or not. Only an examination of all relevant facts will assist you in making that determination.
Hi Julie, I own in Montage County Texas also. I have leased with EOG. Texas is diffrent, still trying to figure it out. Have leased in Oklahoma and I'm use to how the leases are worded. I have two sisters and one did not sign and us other two got a small amount of money in Dec. 2012. Mr. Cotten was very helpfull, thank you. Good luck in your minerals.