Energy Industry (Oil & Gas)/Mineral Leasing

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Question
We have lineral rights in east Texas. We have been contacted by two leasing agents with different offers for some of the rights. One offered $300/acre and 3/16ths, the other $1,000/acre and 1/5th. Another mineral rights owner in the section is insisting on leasing to the lease agent with the lowest offer, at least the offer is lower to us. They have a smaller acreage than us. Can we still lease our rights to the lease agent with the higher offer? What happens if we just don't accept the lease?

Answer
You can lease (or not lease) to whomever you like no matter what your neighbor does, but once you've made a deal with someone you should keep your word of course.

If you don't "accept" a lease offer they may decide to leave you out of the unit entirely by excluding your acreage from their well. They would much rather lease you though in most cases.

Hope this helps you out.
Frederick M. "Mick" Scott CMM, RPL
www.mineralhub.com
The Mineral Hub  

Energy Industry (Oil & Gas)

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Frederick M. Scott

Expertise

Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.

Experience

I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written articles of interest to mineral rights owners which have appeared in various industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and land and title work over the past ten years, and have also worked as a professional landman. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

Publications
National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Education/Credentials
Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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