Attempting to negotiate an oil and gas lease on your own may not be in your best interest especially considering that most companies, or individuals do not submit an oil and gas lease they have written, but one that their attorney has drawn up for them.
Legal Terminology in an Oil and Gas Lease
There are several elements that need to be considered, including understanding the terminology that is used in negotiating oil and gas leases, such as:
- Primary term
- Delay rental
- Secondary term
- Shut in Royalties
- Free gas
- Pooling and consolidation
- Location of tanks and equipment
- Right to use water
- Notice of default
- Indemnification clause
First Offers for Oil and Gas Leases
You will rarely want to accept the first mineral rights lease proposal submitted to you, and an attorney with an oil and gas lease experience will be able to assist you in negotiating for your best interests. If one oil and gas company is asking to lease your minerals, it is likely that competing oil and gas companies will want to do the same which only enhances your opportunity for the best deal. Remember oil and gas leases typically last for several decades so you want to make sure the lease is something that you and your family can live with for many years to come.
Oklahoma Oil and Gas Lawyer
Your oil and gas lease attorney will also want to ensure that the oil and gas company is specifically leasing the minerals for oil and gas and not other minerals belonging to you, which could appear in the fine print, without providing you with additional monetary benefits from the lease of those minerals.
Contact an Oklahoma oil and gas lawyer at Robles Law Firm today to learn more about oil and gas lease negotiations.