My family just received a oil and mineral lease on 107 acres in Wayne co Ms. Several family have already signed. Can I still negotiate my lease and not sign? Will they start drilling without my signature?
Yes you can still negotiate. And no, they cannot begin drilling without your signature–at least not yet. Eventually if you don’t accept a reasonable offer (what others around you have been offered), you can be forced pooled. Basically they pump the oil, and you still get paid. Generally though, you don’t want to be forced pooled. I think there are some articles on here aobut forced pooling.
You can negotiate on your own behalf. However, if you demand terms that are unreasonable (i.e. 50% royalty, etc.) the Mississippi State Oil & Gas Board allows the operator to force intergrate your interest and you may have a non-consent penalty imposed. I think it is 250% but I may be wrong since I have not been involved in these type of hearings for several years. This means the oil company can drill the well and get 2.5 times their investment back before you start recieving your share. For all purposes you then become a partner in the venture and are respnsble for paying your operating costs of the well. The company will most likely deduct these charges out of the proceeds you are due from oil and/or gas sales. I live in Houston, TX now but am from Natchez, MS and have worked Wayne County in the past. I am curious as to what company is leasing an what is going on over there if you know anything. Good luck!
I am not a resident of MS but have minerals in TX, OK and AR. I would not sign any lease unless I knew who was behind it and if they are a true exploration company as opposed to someone just buying your lease, marking it up and then reselling it.
Charles M. McCann said:
I am not a resident of MS but have minerals in TX, OK and AR. I would not sign any lease unless I knew who was behind it and if they are a true exploration company as opposed to someone just buying your lease, marking it up and then reselling it.
As a landman we are not usually not allowed to reveal who our client is until well into the project. If you need the money sign when you feel you have a good deal. If you do not need the money wait until the final stages of the project being assembled.
W. Howard Pritchartt III said:
Charles M. McCann said:I am not a resident of MS but have minerals in TX, OK and AR. I would not sign any lease unless I knew who was behind it and if they are a true exploration company as opposed to someone just buying your lease, marking it up and then reselling it.
I am a landman -
W. Howard Pritchartt III said:
As a landman we are not usually not allowed to reveal who our client is until well into the project. If you need the money sign when you feel you have a good deal. If you do not need the money wait until the final stages of the project being assembled.
W. Howard Pritchartt III said:Charles M. McCann said:I am not a resident of MS but have minerals in TX, OK and AR. I would not sign any lease unless I knew who was behind it and if they are a true exploration company as opposed to someone just buying your lease, marking it up and then reselling it.