Seeking guidance on lease proposal in Borden Co

Oil and Gas Leasing Help
1

I have read many of the articles and discussion forums within this website and appreciate the level of knowledge displayed. I have been contacted by "Landmen" representing CR-II West Texas Holding Co, LLC regarding the lease of mineral interests I own within "Block 97" of Borden County, TX. I am seeking other interest owners in a similar situation as mine to respond with their experience and advice.

I have been offered a 3yr+2yr @ $200 per mineral acre all 5 yrs. Also offered is a 1/5 royalty.

One article suggests lining out (deleting) the "Warranty of Title" provision. This rings true but are there others to consider as being detrimental to my interests?

Also suggested as requiring further consideration are "Surface Rights" and "Fresh Water Rights". According to my Deeds, I maintain ownership of "The Right of Ingress and Egress". Would that be considered "Surface Rights" and if so, what is it worth in negotiating the Lease?

If you are an "owner" within or nearby this block, I would greatly appreciate your input as to your direct experience or knowledge of the circumstances.

Bob Mannix

2

Dear Mr. Mannix,

When printed forms were generally replaced by word processors, the real key is the lease form itself. Nobody can give an informed answer to what snakes to look out for without an examination of the lease form presented.

For example, deleting the warranty is fine as that goes, but pales in comparison to a broad disclaimer of warranty.

The rights of ingress and egress is an element of the mineral estate. Without that right, the minerals are rendered essentially valueless.

One day I will write something about what to look out for in a lease.