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Oil/Gas/Oil Lease Renewal


My family owns 60+ acres in the Snelling Tract (Martin K. Snell Survey, Abstract 1132, Grayson County, TX)which is under lease to Jetta Operating.  We were told that we were to expect division orders prior to lease renewal on 11.17.13, but were just contacted by a land man asking to renew the lease for 3 years with a 2 year extension, at current terms of 3/16th interest, and a $150 per acre bonus.  We are disappointed and a bit suspicious about the changes in plans for division orders.   We would like to ask for a 1/4 interest and $200/acre bonus.  Do you think this is appropriate for this area?  Is this common to have such a last-minute change in division orders?  Many thanks for your time.

Did your oil and gas lease contain a vertical pugh clause which would release all rights below a certain interval at the end of the primary term?  That would be the only way you could be expecting a Division Order to come in, and also be speaking to someone else about a new lease.

Is the landman who is trying to negotiate a new lease with you working for the same company who is supposed to issue the Division Order?  If so, you should be able to find out from him why the Division Order information you were given is different than what you are being told now.

Have you tried to contact Jetta Operating?  I would recommend you phone them, attempting to contact someone in their Land Department to inquire about the situation with your land.  Ask them if they drilled a well, and if so, have the Division Orders been prepared and sent out.  

I do not know what the terms are being offered for new leases in Grayson County, TX.  However, I would suggest that you counter the initial offer asking for 1/4th royalty and $200/acre bonus money.  I expect they will counter - but stick to what you want for awhile anyway.  If they have plans to drill a well, they will come back around and meet your terms.

Best of luck - I hope the information I have provided will be able to assist you.

Please don't forget to rate my answer - so I can help others that need help.


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Laura M. FitzGerald, CPL


PLEASE READ CAREFULLY BEFORE SUBMITTING A QUESTION. I can answer all questions related to oil and gas ownership, mineral interests and working interests concerning the leasing and selling of your minerals, any questions concerning pipeline ROW's, units with the Louisiana Department of Conservation; pooling provisions, depth limitations, vertical or horizontal pugh clauses; and oil and gas terminology. I can offer assistance in negotiating for leasing your property, assisting in locating owners of suspended funds or to receive the best offer for your oil and gas interests, should you desire to sell. I am only able to answer questions regarding oil and gas leases, minerals, royalties, or offers to purchase mineral/royalty interests if I have complete information. Please provide a full legal description for your interest(s). If the question pertains to a lease, please include all terms of any current (or desired) lease offers, including lease bonus amount, royalty and lease term. If the question is regarding a mineral or royalty interest offer to purchase, please provide the offer amount, date of offer, other offer terms, and further details on the mineral/royalty interest, such as lease terms, and if producing, the average monthly income. Since I receive numerous inquiries daily, I am only able to answer your questions efficiently and effectively if I have complete information. I must decline any questions submitted with incomplete information. If your question is non-technical in nature and you simply need assistance understanding an oil and gas matter, please submit your question with as much information and detail as possible. Any background information that has led to your question is also very helpful.


I have over 34 years experience as an Independent Petroleum Landman. I became a Landman after working as a paralegal for Oil & Gas Attorneys for 8 years. My first 2 years were spent specializing in Well History and Research with the Louisiana Department of Conservation, then moving into clearing title defects and handling title curative for oil and gas properties for the next 6 years. Subsequent thereto, I handled title issues, buying oil and gas leases and settling surface damages. I also acquired acreage for drilling prospects in excess of 10,000 acres. I also became a mineral/royalty owner commencing in 2004 and have found that I can help many people when they have reached the point in their lives they feel converting their minerals or royalties into a cash asset benefits them.

American Association for Professional Landmen, ArkLaTex Assoc. of Professional Landmen, and Dallas Association of Professional Landmen (DAPL), Certified by the Women's Business Enterprise National Council (WBENC)- South. This certification is one of the most widely recognized and respected certifications in the nation. This designation is reserved for only those women-led businesses that exemplify the characteristics of integrity and professionalism to which the WBENC adheres to so strictly.

Attended LSU, became a Certified Professional Landman in 1994; Notary Public with dual authority in multiple parishes in North Louisiana; Bilingual in English and Greek

Awards and Honors
Expert Oil & Gas Professional assisting attorneys representing landowners. Involved in 2 lawsuits and both suits were awarded to the landowner. Ilios Resources, Inc. has been awarded the Best of Shreveport Oil and Gas Mineral Buyer Award for 2016, 2015, 2014, 2013 and 2012.

Past/Present Clients
Consultant Landman for Texas Oil & Gas (TXO Production Corp.), Anadarko Petroleum, Comstock Resources,Independent Geologists, Pipeline ROW Clients, and Oil & Gas Attorneys. For the past 5 years my practice is primarily an advocacy for the landowner. I also assist royalty owners recover suspended payments or incorrect royalty payments, or sell their mineral or royalty interest.

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