Replies to This Discussion

Permalink Reply by VirginiaDore on April 2, 2012 at 18:11

All well and good in theory, but in practice easier said than done.  For example, in the recent activity in Columbia County, Ark., Triad wasn't ABOUT to reveal that it was negotiating for Southwestern, or yield on the question of post-production costs.  I (and others I know of) tried to negotiate on the latter point, only to be met with a response of "best we will do, take it or leave it."

Permalink Reply by The_Baron on April 3, 2012 at 3:19

yes, Virginia. I think that is the typical experiance lessors have in developing resource plays.

 

I bet many of the landmen at Triad didn't even know much, they just were pointed in a general direction and told to buy leases. If they did know, they were told not to reveal anything... to do so means losing their job.

 

When these big operators come in and lease like this, it is to their advantage, especially considering the vast amount of leases they take, to keep as many lesses as close to their standard form as possible. If you lack substantial acrerage, then you lack bargining power... especially in AR.

 

 

Permalink Reply by Skip Peel - Mineral Consultant on April 3, 2012 at 3:43

Check lists for mineral lease clauses are of limited value without the ability to know which are applicable to the specific circumstance.  State mineral laws differ as does the size, nature and location of the mineral asset.  It is always advisable to engage the services of an experienced O&G attorney.  Not just any lawyer will do.

Permalink Reply by Jon on April 3, 2012 at 6:54

Skip,

I agree with you about the checklist.  Just added it to shed some light on the process not to be a steadfast outline to follow.  I personally would not sign a lease without the help of at least a lawyer and preferably an O&G attorney.  There could be a lot at stake if it was a bad lease. Good Luck to all.