I’ve recently requested that a passage of an O&G lease be stricken out because it states ‘all other products’ extraction as part of the potential royalties. My idea was to obtain seperate leases on anything else they find. Since I also requested as much post-production costs be withdrawn as possible the lease was changed to omit gas entirely as its “nominal yield” isnt even worth it compared to oil. So apparently my lease is for oil only.
Any suggestions here? Does this sound good?
In my opinion, terrible idea to strike gas. Gas often comes up with the oil as its bubbles help bring up the oil, so you need it in the lease. Or condensate liquids come up with gas as part of the flow stream. Think about Italian salad dressing. All mixed together and only separate out if you let it settle. And you definitely want to get paid on the gas. Not all wells are just oil. You would have a hard time getting separate leases for each product. With a good attorney’s help, you can refine the 'All other products" clause on the lease.
To be blunt, youve read to many crazy conpsiracies on here/ or heard from friends neighbors to do something like that. Im guessing you did this due to the uptick in lithium? Which is a completely different animal