Expert: David Traugott - 9/22/2008

Question
Devron has had a lease since 2001, I bought the land in 1978. Two wells exist with a 1/2 mile south and 100 yards East. I have 1/2 rights to oil,gas etc. Devron has paid $330 for 3 year leases. With the existing wells (one recently reworked) and the Barney Shale on mind, this seems a little low and could the oil/gas be pulled out from under me? The landman is rather obnoxious when I wish to discuss their intentions. Do I have a chance of finding an independant driller for 12.5 acres or should I gather the neighbors into a group?

Answer
You can always hire your own independent landman or attorney and let them deal with Mr. Obnoxious.  Here is a link on how to negotiate the terms of a new lease.

http://www.tlma.org/oilgasleasechecklist.pdf


Another option would be to hire a turnkey operator to drill and complete the well(s) for you (although this will probably be quite expensive).  However, they may agree to drill and complete for a share of the royalties, you'll just have to see what kind of deal you can work out; see the link below.

http://gwi179int.originbeta.com/services/turnkey.htm