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Oil/Gas/Mineral Lease - Winkler County, TX

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Question
I was recently contacted by Eagle Land Services.  Apparently, my grandfather owned mineral rights to a plot in Winkler County, Texas.  They contacted me and offered me the following:

Bonus:  $800 NMA
Royalty:  1/5
Primary term:  3 years, paid up lease
Option Term:  2 years
Total Net Mineral Acres:  20

They then contacted me a month later and offered $1000 NMA.  I told them I'd consider it and get back with them.  They've contacted me a couple of times and I said I'd counter propose to them.

There's a lot I don't know about this situation and am wondering if I should retain an attorney to get the best deal.

Answer
While I'm not that familiar with the current oil and gas lease terms being offered in Winkler County I would agree that if you don't know much about the business it might be a good idea to contact an oil and gas attorney to help you with the negotiations, since an oil and gas lease can affect your rights for decades if a producing well is drilled. You want to make sure you do it right, especially if there are more than just a few acres involved.

You might also find the Oil and Gas Leasing Tips article I wrote for the Mineral Hub helpful. In it you will find many helpful tips on how to negotiate with these oil companies when they come calling for a lease.

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

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 several articles which have appeared in various oil and gas 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 landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. 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.

Organizations
National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

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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