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Oil/Gas/Hodgeman County oil lease


Hi Laura. My family has been approached by a reputable company to lease a section or two from us in Hodgeman County Kansas that apparently has a prolific oil field in that area which has already produced over 1.3 million barrels of oil. They are offering a 1/8th royalty. That seems quite low to me. The landman say's 3/16th isn't going to happen. I realize the landman does not have our best interests in mind. Are you aware of any other leases in that area and should not 3/16 be easily negotiable? They say they will seismic test within a year. The lease we be no more than 3 years. In addition, one should demand payment at the wellhead in lieu of after transportation costs, correct?

Thanks for entrusting me to provide you with oil and gas advice. I love what I do and love to help people so this is a win-win opportunity for me.
I do not know what the lease values are in your area but would suggest you always counter from their first offer. Perhaps they won't agree to 3/16ths so counter at 15%. (3/16ths is 18.75% so you're countering at 15%).
As for well head costs not being deducted that is a difficult issue to get around and probably not reasonable to expect. Marketing costs are part of what enables the Operator to enhance the sales value which benefits all parties.
Also I don't know the size of your tract of land for which you are being contacted to lease but remember that there is more negotiating power with larger land sizes so you should keep your expectations of your negotiating power in line with same.
The last suggestion I have to make is that you check with other landowners in the area to see what they have been offered so you know the offer you have received is fair.
Best of luck and thank you for asking me!  


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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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