HI there everyone. I am new to this forum. My father has brain cancer, so I have to handle his mineral interests. I recently had a lease offer for $5K per NMA. I did my research and ultimately asked for $7500 NMA. I also amended the contract. All the terms I asked for were granted. I may need guidance on some other areas as sooo many offers are rolling in.
Kristin, If you have read many of the posts on this forum, the most common advice is to have an experienced oil and gas attorney look at your lease. The royalty clause needs to be carefully reviewed to determine what costs can be deducted from the royalty. Do you have a continuous development clause? There are several variations, some favorable to the lessor and some favorable to the lessee. Are you going to allow for pooling? Do you own the surface where surface use and damages will be important. Have you reviewed the competency of the companies that have made you offers? If it is a broker, require them to disclose which company they are representing. Do you care if the lessee assigns the lease to a third party? Assignment clauses need to be carefully reviewed to insure they are upheld. In short, keep in mind the potential lessees will not draft a lease for your benefit, hence the need for you to get your own attorney if you own a significant amount of minerals.
Kristin, Mr. Christian is correct. Bonus and Royalty (I assume you are getting 1/4) are just the beginning.
Thanks so much. Luckily I have a high profile Landman in the family that is part of a large portfolio company. We only own minerals. We amended the contract to protect our interests beyond what is customary.
Bonus is $7500 per NMA. First offer was $5k per nma