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Permalink Reply by Jed Clampett on June 25, 2023 at 3:43

 excellent. thank you.

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Permalink Reply by Rock Man on June 25, 2023 at 4:45

PS note on this - in some situations, royalties are paid for flared gas.

This is addressed in the original lease that is signed.

I personally know of two instances of this - in Reeves Co (Permian Basin) with present day OXY lease and in Howard Co (Midland basin) with Bayswater operated wells (have been paying royalty for flared gas for month's due to lack of gas pipeline).

This all roots back to original lease an individual signs. Not a common clause - but never hurts to ask for it!

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Permalink Reply by Skip Peel - Mineral Consultant on June 25, 2023 at 5:02

Thanks, Rock Man.  And it never hurts to get professional help.  Experienced O&G attorneys know how far to push lease terms based on the specifics of a mineral interest.

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Permalink Reply by Rock Man on June 25, 2023 at 5:11

We always continue to say this but getting professional help on any O&G lease document is a mandatory issue in my opinion.

Even if one feels that they are "experts" on such documents.

A third party should have ideas on the latest trends and issues associated with such documents.

What you sign will be part of your estate FOREVER.

Secondary to getting professional help is being aware of the subsurface / O&G potential in one's area. I am not saying one has to be a geological or petroleum engineering expert, but having a basic knowledge of what is going on with one's minerals as to prospective zones, issues and historical results is always a big PLUS.

Just my opinion as always on all these issues.

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Permalink Reply by Skip Peel - Mineral Consultant on June 25, 2023 at 5:19

Ditto.

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