Hints on Negotiating Oil & Gas Leases

by Kenneth E. DuBose on June 16, 2015

Texas A&M Real Estate Center has released its latest recommended guidelines for getting the most out of negotiating an oil and gas lease.

“Hints on Negotiating an Oil & Gas Lease”, written by attorney Judon Fambrough, was written to help inexperienced mineral owners who are often at a disadvantage when dealing with an experienced representative from an oil company. The document acquaints mineral owners with the more common provisions contained in an oil and gas lease. It contains important legal updates and practical help on issues such as how to deal with surface damages, job site injuries, avoiding post-production fees.

This updated version provides for the changes in the industry brought about by the increase in horizontal drilling and fracking.

Fambrough says that “Historically, you had one vertical well per drilling pad. Now you have as many as six horizontal wells completed off one drilling pad. There are fewer pads, but they’re larger. When negotiating a lease, make sure you get prepaid for your surface damages, but make sure the amount the company pays is based both on the size of the drilling pad and each completion.”

Download the pdf: Hints on Negotiating an Oil & Gas Lease

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