Question: Can a Section be leased with more than one landman?
Yes. Landmen generally represent the company they are leasing for. But competition brings in more companies, therefore, more landmen.
Yes, that section has at least eight companies leasing in it.
Maybe my question was vague a littleā¦ I have leased with one landman in Section 34, Township 6 North, Range 5 West. Another landman is seeking me to lease that also. How do I proceed? What info do I need to know?
You can deal with any of them until you get the best deal that satisfies you. The clauses in the lease are so much more important than the lease bonus they may offer. Many of us prefer the highest royalty such as 1/4th or 1/5th because it usually pays out more in the long run.
You need to get copies of the draft leases and Exhibit A from each agent. Compare them. Ask who the operator will be, when do they plan to drill, what horizon do they plan to drill, when is the pooling. Ask who they are leasing for. (I am not a fan if they will not tell you, but it is secret sometimes.). What you really want is a lease that is favor of the mineral owner. Once you get close on an offer price, come back and get some hints on what you really want to have in the lease clauses. Those drafts will need some changes.
Just read your comment again. If you have already leased then you cannot lease again until the lease has expired. Has the lease been filed at the courthouse?
Thank you very much!
Iāve asked this before, but never saw a response: where can we find a template that lays out the wording for the good, owner-friendly lease provisions? I realize not all would apply to every case, but it sure would be helpful to see the actual desirable wording, so we could better understand the references you and others often make to those āgotta haveā clauses. Thanks.
I think you will find reluctance to posting such suggestions. It is simply people do not want to provide poor advice or possibly be blamed for future problems. The best thing to do is use an attorney or what I do; is print out some recent leases that have two pages of Exhibits from the County Clerkās files. Look for no deductions, no warranty, closed-in, shut-in limits, no 2-year extension, etc. Hint - Those leases are usually 4-5 pages long. These are VERY important as they can affect your Royalty for many years.
Tim - If you already leased this Section & the lease is still valid, you need to tell the other callers.
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