Oil/Gas/canadian county oil lease sect 33
A landman called and offered to re-lease my land. l requested a better price and was told to contact the head office of Cimarex directly. What would be a good price and how do l contact Cimarex and who would l speak to?
Thanks for inquiring. Your question about, "what amount of per acre signing bonus should I demand," is an excellent question.
You are probably familiar with legal proceedings which you have seen on television. In court, opinions about the value of leases are provided by expert witnesses. Lawyers then provide arguments about the law and analysis of the testimony. Accordingly, as an attorney, to negotiate a lease or to litigate a case about damages, I would hire a landman or geologist to provide an accurate opinion about the per acre value of a lease, rather than attempting to provide that opinion myself. Perhaps you have done something similar by hiring an expert appraiser or relying on the lender's expert appraiser to provide a solid appraisal of the value your house when you sold or purchased it rather than relying solely on an educated guess of a real estate agent.
In the oil and gas context, landmen and geologists are the type of consultants who are able to provide the most accurate and up to date opinions about lease values in specific locations. It is important to obtain the advice of such consultants because leases which are located very close to each other may differ greatly in value, depending on the underlying geology and the urgency to drill the location. One property may be worth one hundred dollars per acre while another nearby property may be worth thousands of dollars per acre. Therefore, I would recommend that you seek the opinion of a geologist or a landman about the value of any specific lease.
Regarding your question about how to contact the head office of Cimarex, you may call either of the following locations. If you ask for their land department that should get you started.
1700 Lincoln Street, Suite 1800
Denver, CO 80203
15 East 5th Street, Suite 1000
Tulsa, OK 74103
Good luck to you with the negotiation of your oil and gas lease.