Replies to This Discussion

Permalink Reply by C N Taylor on January 25, 2015 at 13:56

To Mineral Owner LA: in negotiating your lease be sure to request "cost free royalty."

• ▶ Reply

Permalink Reply by Mineral Owner LA on January 26, 2015 at 8:57

Thanks to everyone who had valuable input on the leasing offer I received in T11 R10W... Your comments were helpful and aiding my decision to lease.

Hopefully it will turn out to be more than just a lease in the way of producing wells! 

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on January 26, 2015 at 9:02

Good Luck.

• ▶ Reply

Permalink Reply by William C. Morrison on January 30, 2015 at 5:32

You do not say how many acres are involved.  If over several hundred acres, I would consult with a lawyer, preferably one that deals in Oil and Gas Minerals.  They will help you structure the lease so that it is more balanced and not all in favor of the oil leasing company.  Big company's often use front outfits to do the leasing, many of which are out of Lafayette and have odd names (cooked up by local lawyers I am sure).  To me $750 per acre is pretty good money, we have done as much as $150 in Pointe Coupee Parish.  But your local lawyer will figure out what is good and acceptable for you.

• ▶ Reply

Permalink Reply by J B Nabors on January 30, 2015 at 9:45

C N Taylor gave good advice about 'cost-free royalty" clause. However, you still need to be very careful: Chesapeake (and some others) are notorious for ignoring or weaseling CFR clauses. Get a GOOD O&G Attorney. (My family was very pleased with Lake Hearne in Shreveport). Whatever it costs is money well spent!

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on January 30, 2015 at 10:47

Those who accept No Cost Royalty language from the company offering the lease shouldn't be surprised if the wording is not iron clad "no cost".  Get an O&G attorney.  I also recommend Lake Hearne and any of the other O&G attorneys at the Davidson, Jones & Summers firm.

• ▶ Reply

Permalink Reply by Henry on January 31, 2015 at 7:38

Also, ask for a clause that prevents your lease from being assigned to CHK or any subsidiary or affiliate.  Then you are guaranteed that you never have to deal with them.  Simple as that.

• ▶ Reply

Permalink Reply by Joe Aldridge on January 31, 2015 at 8:58

Some of the attorneys on here need to respond to that statement. I was told a number of years ago that a statement like that is a "restrain of free trade" and is not legal. At that time we were having problems with Amoco and that was what one of the land owners wanted to include in a lease and he was told that it was not legal . What say you guys?

• ▶ Reply

Permalink Reply by Two Dogs, Pirate on January 31, 2015 at 12:20

I have seen clauses saying that an assignment would have to be agreed to by the lessor but have never seen one saying that you couldn't assign to a certain entity.

• ▶ Reply

Permalink Reply by Henry on February 1, 2015 at 2:01

So then ask for Two Dog's clause.  But do whatever you can to keep your lease from ever getting in the hands of CHK.

• ▶ Reply

Permalink Reply by Hopeful About Natural Gas on January 31, 2015 at 18:43

My great grandfather's original deed said the property cannot be sold to a member of the "Catholic faith." I don't think it could be enforced today.

(not trying to put down any members here, that's what the deed says. Many old deeds had this type of language.)

• ▶ Reply

Permalink Reply by HBP on February 1, 2015 at 12:42

I would not say it is illegal.  And there are some out there of record that I have read, however they dealt with small operators, one of which is not in business anymore.  It was easier for a company to agree to those since the chance of assignment to the small operator was less likely.

parties are free to contract in most anyway under the law, but I doubt many will take the no CHK assignment language since they are a larger company with a large position in NW La.  But you can always ask.

• ▶ Reply

• ‹ Previous
• 1
• 2
• 3
• Next ›
• Page