What happens if one party does not want to lease?

Oil and Gas Leasing Help
1

I received a phone call this last week from a landman in Tyler, Texas. I was informed that I share mineral rights with other family members. It seems my sister and I inherited these mineral rights when my mother passed away in 2010. Neither of us knew about these mineral rights.

The landman told me that my mom’s other two siblings and three others whom I do not know will be involved. My very basic, first question is if one of us does not agree to the lease, does it negate the lease for everyone? My guess would seem that if one person declines, the offer is no longer good for anyone.

How does this work? Please help. Any advice is appreciated. Once I get an answer to this question, I’m going to ask about the information contained in the lease that I received today. I don’t know what it means, but it doesn’t look like much money involved at all.

2

The others aren’t required to lease and drill unless the operator insists on everyone signing. Usually operators want to lease a high percentage of the outstanding mineral interest so they don’t dilute the profitability of the well. You should try to get together with the others and negotiate together. It increases your leverage and reduces the costs of attorney fees per person.