When a landman makes an offer and you counter, what is the process. Do he/she have to issue you a new lease offer. Does the landman have to go back to the oil/gas company for approval. Also, is this a long time process.
Usually the broker (i.e. Twin Cities) will have some discretionary authority to approve certain clauses and bonus offers, such as pugh clauses, surface provisions, damage/timber reimbursements and other 'common request' The landman usually has no authority to approve any counter-offers, they need to go back to their broker.
In other cases, the broker needs to seek approval from their client (Chesapeake) for "less than ordinary" request. Individual operators have different relationships with the broker's they hire to acquire the leases. Some have more authority and some less, it all depends on the situation.
When the 'land grab' was in full swing, brokers were approving most counters on 'the fly' so they don't loose out on a lease to the competition.
They either accept your counter-offer or they counter again. The landman usually always has to go back to the broker for approval (and sometimes the broker to the client). The length depends on at least a couple of things; how bad they want the lease and the terms of the counter proposal (attorneys). Landmen are in most cases just the go between.
I would hire one right now. One of the best in town and who I highly reccomend is Phillip Downer. you want your lawyer doing the leasing negotiation, ironing out all your clauses etc. Protect yourself.
Where is this lawyer located? Texas or Louisiana? If he's in Texas, I may end up needing a lawyer if and when I need to re-lease.
The last lawyer I used was LESS than desirable. Will never use her again.
He is located in downtown Shreveport, he is as good as they come when it comes to Oil and Gas litigation, representing some of the largest mineral owners in the area.
You need to find a good Texas lawyer Teacher, I am sure someone on the site can reccomend one for you.
Alot of people may feel a lawyers fees are unecessary, they could not be more wrong. I would rather pay a lawyer for what he knows that sign a lease that can screw you for the rest of your life, your children's lives and their children's lives.
Remember, production companies are in business for one thing, to make money. They aren't looking out for your interests nor should they. IT IS YOUR RESPONSIBILITY to look out for your own interests. This will be one of the most important financial processes of your lives, are you qualified to handle it? 99.9% are not
I agree. The fees are well worth it. As a mineral/landowner there is just no way we can know all that is necessary to protect our interest. I would hire a lawyer and pay him from my bonus if needed just to make sure that what I sign doesn't cost us a WHOLE LOT MORE in the long run.
As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More