We are in the process of compiling a list of items to add/remove/change from a lease. I have looked at the lease suggestions from Kassi. What are people actually getting approved in their leases these days?
I'm just a bit confused...what sounds plausible to me may not to the O & G company. These are some of my questions but I would love to know what everyone else thinks.
I know that the Favored Nation is pretty much not going to happen.
I understand about only allowing for oil and gas and that the royalties shall be cost free. I have a copy of the clause wording for all the things that should be excluded with regards to cost free royalties.
What about when royalty payments should start, shut-in royalties, and lease rental payments. When should you be payed rental for your lease?
I understand the importance of the indemnity clause and no responsibility for the land owner. Also I understand we shouldn't agree to anything larger than 640 acre units.
What specifically can you request with regards to a vertical clause/horizontal clause?
I know these are alot of questions, I am just curious how everyone else is handling all of this.
We just had an attorney look over our previous lease which was also drawn up by an o&g attorney. She gave us a list of recommendations. If you would like to look at it, I will be at the meeting in timpson on tuesday.