My cousin wrote me that he didn’t negotiate at all. He just read the proposal and signed it. This was back in 2011 in Williams County, North Dakota. These were mineral rights that were intestated via our grandfather. An old parcel purchase long forgotten. Grandpa died in 1981. How unusual is that move? To sign without any negotiation nor did he have an oil gas lawyer advising him of course. He was under the assumption the acreage would be dormant. Even though this was at the beginning of the Boom in Williston area and oil at 105… I have not seen the lease yet, so don’t know what that first offer entailed.
Every lease I have ever gotten has been mostly in favor of the company that sent it. Almost all clauses in the lease are negotiable and a wise mineral owner will get informed and know what they need to do to get a better deal. Places like the forum and National Association of Royalty Owners (NARO) are good avenues for getting educated. Unfortunately, most folks do sign without understanding what they are signing and end up with less favorable terms that can hold their families for generations. Legal documents should always be thoroughly understood before signing.
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Unfortunately, too few individuals have leases reviewed by an attorney. To quote Abraham Lincoln: “He who represents himself has a fool for a client.” Feb 21, 2011. Also, there is no such thing as a “standard” lease.
Indeed zero leases are standard. My cousin, the quasi-personal representative of our grandpa’s intestated mineral rights, wasn’t even authorized to sign the lease except through the heirship affidavit which the oil producer accepted. Cousin wasn’t even an owner; his mother was, as were three other relatives. My father’s wife wasn’t even consulted or informed at that time. My cousin, along with his deceased father’s family lawyer, assumed the small acreage wasn’t going to produce anything basically. As we know, a lease does mean little as far as predicting yields. So two wells later and then a buyout by another oil producer created a ball of confusion on my own father’s side resulting in eventually three years later a suspension by the new oil company. So a year after that (now) I, as a legit co-owner, still have not received one dollar in royalties from the 11 grand owed me and my siblings, though that “fat check” is hopefully six weeks away. Doesn’t mean I haven’t suffered.