Hi, we are nonparticipating mineral rights holders for a property that is about to be drilled in Reeves County. We've just received a Ratification of Oil and Gas Leases (Non-Participating Royalty Interest Owner) to sign and have been told this is the procedure to follow so that we can collect royalties if the drilling is successful. Is this normal?
It says, "NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed by and between the parties that the undersigned hereby adopts, ratifies, and confirms the Leases and all of their terms and provisions, and does hereby GRANT, LEASE, DEMISE, AND LET to the Lessee, and the Lessees' successors and assigns, the Leased Premises to the Lessees of the Leases named therein, subject to and in accordance with all of the terms and provisions of the Leases. The undersigned agrees and declares that the Leases are binding, valid and cover all of the undersigneds' interests in the Leased Premises."
For one thing, there has been no consideration paid (which I understand is normal since we are nonparticipating, yet there the statement is that we are supposed to agree to). Second, we want to make sure we are not signing away something we shouldn't. The landman for the driller says this is normal protocol. We just want to check on it. Thank you so much.