have been offered 3/16th’s royalty for a 3 year term, no extension. originally offered 1/8 royalty for a 3 year term with a 3 year extension. description of property the south half of the nw qtr of section 3, township 7 south, range 9 east, except the east half of the se qtr of the nw qtr, containing 60 acres, more or less. does this seem reasonable?
I am not familiar with Illinois law. The wording of the lease is so much more important than the royalty, but usually 3/16ths and no extension is much better than 1/8th and an extension. Suggest that you find a good oil and gas attorney to review the lease as it may hold your family for decades and decades.
thanks for the info. the only problem is that i am not sure i can afford an attorney. what amount of of money am i looking at? i understand what you mean about the importance of the wording, but i have never used an attorney for mineral interests.
The draft of a lease that comes to you from a lessee is almost always to the operator’s favor and not the mineral owner’s. Almost every clause in the lease is negotiable, but you need to know what you are doing to get the best terms for you and your family. An attorney knows the laws of the state and what needs to be changed to protect you. Using an attorney also may get you a higher lease bonus amount, so may be worth the expense just from that point. I do not know the rates for Illinois. I would suggest that you look online for oil and gas attorneys in your state and call a few and ask what they charge for a simple oil and gas review and edit.
sorry for misinformation, this a division order. how can you negotiate a division order (I thought lease was where negotiation happened). It all points to me being dumber than i thought. I do not have a copy of the original lease. when my mother passed my brother took all her files and now he has dementia.
Division Order is a completely different beast. The DO cannot be negotiated, only verified or disputed. The lease is when the details are negotiated. The Division Order is simply stating the the person or entity that signs it is indeed the owner and the amount of the decimal interest Is (or is not correct.). They just want to make sure they pay the right person.
Ask the company that sent the Division Order to send you a copy of the original lease. It will have the royalty fraction stated on it. Did you settle your mom’s estate after she passed? The DO company may need a copy of the title documents (probated will, trust, etc.) to verify that you and/or he is the correct owner. if there was no will, then there are various statutory steps that you have to accomplish. There are several good attorneys on the forum who have written up posts. The items that you need to know in order to verify the DO are the net acres and the royalty amount. If the well is horizontal, then you need a bit more info.
again thank you for your advice and time. mom’s estate was probated so all that was well taken care of. as always you are most helpful and i will verify acres (net) and royalty amount.
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