The game has changed. Larger oil and gas companies are now buying leases in Kansas and are paying paying bonuses unheard of just several years ago. They intend to drill deeper and more expensive horizontal wells than ever before.
The Lease Is EXTREMELY Important.The oil and gas lease is extremely important. It establishes the rights an oil company has in the land. Once signed, it cannot be changed. The land may be burdened by the lease for decades. Thus, it is imperative to protect your interests before signing a lease.
Oil and gas lease forms are drafted by the oil and gas companies for their benefit. They rarely address all the concerns of the land owner. Therefore, the landowner usually should require an addendum or rider be attached to the form lease to address the land owner’s concerns.
Land Owner Issues To Address
Examples of issues that need to be addressed in an oil and gas lease are:
- Interference with irrigation and other land use
- Placement of facilities, pipelines and roads
- Location of drilling
- Proximity to houses and buildings
- Amount of damages
- Sizes of oil and gas units
- Number of acres covered by one lease
- Amount of land that can be held by production
- Shut in royalty amounts
- Royalty clauses
- 3-D geophysical permits
- Water use
- And others
What I Will Do
- Review the proposed lease.
- Talk with you about what interests you need protected.
- Explain the terms of the lease to you in plain English.
- Draft an addendum protecting your interests.
- Negotiate with the oil company.
This will give you peace of mind that your interests are protected.
What To Do
If you have an offer from an oil or gas company:
- Give me a call at 785-260-0215 or send me an e-mail at eric@EricAttorney.com.
- Deliver to me a copy of the proposed lease and all correspondence received from the company. You can:
- Mail it to: Eric W. Marshall, Attorney at Law, 1901 E. Iron Ave., Salina, KS 67401.
- Fax it to: 1-815-572-0262.
- Scan and email it to: eric@EricAttorney.com
Everything can be done without an office visit, unless you want to come to Salina.