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Oil/Gas/Correction lease?

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Question
Husband and I signed with Gulfport. Gulfport sent us a letter stating that the numbers on the lease were transposed. The letter is asking us sign and have noterized a correction and amedment form. My question is since it is, as it stands now really not a legal lease, are we able to renegotciate for a higher price per acre. The price per acre has gone up quite considerably. Thank you for your time.

Answer
The original lease is not valid if the legal description is incorrect, so you are right it needs to be corrected or they don't have a lease. Since you agreed to a certain bonus the first time I would honor that if it were me and just sign the correction lease, while making sure they don't slip anything untoward in there that wasn't in the first one.

You can ask for a higher bonus if you wish of course, but they may decide just not to lease you at all and will likely ask for their bonus money back if they paid you any. That's the risk you'd take by trying to renegotiate a bonus you already agreed to. They might go for it. They might not. Wish I could tell you how they'd react for sure. If they really did "lowball" you the first time, and you present evidence (i.e. you know of a neighbor that for sure got more) they might work with you, but you'd want to have something besides "hearsay" to present to them to support your argument for a higher bonus.

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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