I have a lease offer from Sims Land Services. Their lease form is awful. Has anyone dealt with them?
I personally have not, but can I ask you in which part of the County your interests roughly lie? My grandma left me interests in several Sections (mostly east and southeast of Brownfield in Block T) but they haven’t been leased in 8 or 10 years. Thanks!
I am also interested in the location of your minerals. My sisters and I have a decent amount in Block C-38 of the PSL Survey in the Southeast of the County. We’ve been leased 2 times, but the last lease expired about 5 years ago. Thanks.
Sections 35 and 44, Block DD, John H. Gibson Survey. Their corners touch each other and both are on the South side of US Hwy. 385.
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See above answer.
Some lease forms are better than others but you must remember that they are all written to benefit the lessee. Their job is not to offer a lease that is good for you or that you like. Hire a good oil and gas attorney and get a good lease - it is worth it.
My cousins and I have also been approached by Sims. My cousin has been negotiating with them, and has had some success getting her changes accepted.
Thank you very much! Any luck getting bonus increased?
They are now softening on their lease clauses that read like a working interest.
AW
Remember, if the lease stipulates payment based on “market value at the well” or similar words, then no matter how much they “soften” everything else ( including saying things like “no costs or deductions”) you will still pay Post Production Costs. If your lease says “gross proceeds” or “amount lrealized” at the point of sale, then the lessee may be prohibited from deducting Post Production Costs. This is a rapidly evolving area and you should have your lease reviewed by an Oil & Gas Attorney before signing.
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